Investor Presentaiton
Canadian Registered
Covered Bond Program
Key Highlights
Covered Bond Collateral
Housing Market Risks
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Tests and
Credit Enhancements
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Required Ratings and
Ratings Triggers
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Interest Rate and
Currency Risk
TD
Canadian residential real estate property with no more than 4 residential units
Uninsured conventional first lien assets with original loan to value ratio that is 80% or less
Latest property valuation shall be adjusted at least quarterly to account for subsequent price adjustments using
the Indexation Methodology
Asset Coverage Test
Amortization Test
Valuation Calculation
Level of Overcollateralization
Asset Percentage
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Reserve Fund
Prematurity Liquidity
OSFI limit⁹2
No less than one Rating Agency must at all times have current ratings assigned to bonds outstanding
All Ratings Triggers must be set for:
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Replacement of other Counterparties
Establishment of the Reserve Fund
Pre-maturity ratings
Permitted cash commingling period
Management of interest rate and currency risk:
Interest rate swap
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Covered bond swaps
Ongoing Disclosure
Requirements
Audit and Compliance
Monthly investor reports shall be posted on the program website
Plain disclosure of material facts in the Public Offering Document
Annual specified auditing procedures performed by a qualified cover pool monitor
Deliver an Annual Compliance Certificate to the Canada Mortgage and Housing Corporation ("CMHC")
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