Investor Presentation Second Quarter 2018
DETAILS: CANADIAN LEGISLATIVE COVERED
BONDS (CMHC REGISTERED)
Issuance Framework
Eligible Assets
Mortgage LTV Limits
•
Basis for Valuation of Mortgage Collateral
Substitute Assets
Substitute Assets Limitation
•
Canadian Registered Covered Bond Programs' Legal Framework (Canadian National Housing Act)
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•
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Canadian Registered Covered Bond Programs Guide issued by Canada Mortgage and Housing
Corporation (CMHC)
Uninsured loans secured by residential property in Canada
LTV limit of 80%
Starting in July 2014, issuers are required to index the value of the property
underlying mortgage loans in the covered pool while performing various tests
Securities issued by the Government of Canada
Repos of Government of Canada securities having terms acceptable to CMHC
10% of the aggregate value of (a) the loans (b) any Substitute Assets and (c) all cash held
by the Guarantor
The cash assets of the Guarantor cannot exceed the Guarantor's payment obligations
for the immediately succeeding six months
Asset coverage Test
Amortization Test
Overcollateralization
Reserve Fund
Prematurity Liquidity
Covered bond swap, forward starting
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Cash Restriction
Coverage Test
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Credit Enhancement
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Swaps
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Interest rate swap, forward starting
Valuation calculation
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Mandatory property value indexation
Market Risk Reporting
Covered Bond Supervisory Body
Requirement to Register Issuer and Program
Registry
Disclosure Requirements
• CMHC
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Yes; prior to first issuance of the covered bond program
Yes
Monthly investor report with prescribed disclosure requirements set out by CMHC
Investor reports must be posted on the program website
Required to meet applicable disclosure requirements in Canada, the U.S. and UK
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