Covered bonds were first created in 19th - century Germany when Frankfurter Hypo began issuing mortgage covered bonds .
In Europe there exists a type of asset - backed bond called a covered bond , commonly known by the German term Pfandbriefe .
Covered bonds were first created in 19th - century German when Frankfurter Hypo began issuing mortgage covered bonds .
In Europe there exists a type of asset - backed bond called a covered bond , commonly known by the German term Pfandbriefe .