Washington Mutual’s Covered Bonds Harvard Case Solution & Analysis

Washington Mutual issued 6 billion Euro of covered bonds in 2006. The object of the case is to ask whether these bonds are misvalued in the late 2008. The case is established in September 2008, and Washington Mutual is confronting a significant distress due to mounting losses on its mortgage portfolio. Following investment bank Lehman Brother's Chapter 11 bankruptcy protection filing in mid September, the price of Washington Mutual's covered bonds has dropped to 75 per 100 of face value.

The case asks students to assess the underlying security portfolio in the event of liquidation, in addition to evaluating the likelihood of different results as these bonds are overcollateralized. The case takes position during a period of significant uncertainty in the global capital markets.

Washington Mutual's Covered Bonds Case Study Solution

PUBLICATION DATE: March 13, 2009 PRODUCT #: 209093-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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