that will accrue to the cover pool should the issuer cease making payments under the covered bonds (this event is called a CB anchor event). Then the maximum potential rating produced at the previous stage is refined to account for certain risks, particularly refinancing risk, arising on the occurrence of a CB anchor event. This is done by applying the so-called timely payment indicator (TPI) framework. The TPI framework limits the rating uplift that covered bonds may achieve over the CB anchor and may constrain the final covered bond rating to a lower level than the maximum potential rating under the quantitative model. Usually the issuer's rating is used as a reference point (CB anchor) from which a probability of default for the issuer's payment obligations is derived. See also Financial instruments European Covered Bond Council Securitization The Cover References External links FDIC Policy Statement on Covered Bonds ECBC Technical Issues Covered Bond Comparative Framework Database Covered Bond Label Foundation US Covered Bonds Morrison & Foerster: Covered Bonds Bonds (finance)