FDIC Policy on Covered Bonds Could Boost U.S. Market, But Substantial Changes Would Help
June 27, 2008
Mortgage security experts are applauding efforts by the Federal Deposit Insurance Corp. to help make covered bonds more mainstream in the U.S., but they suggested a number of improvements that could make the agency’s new policy statement even more effective. With global issuance topping an estimated $2.75 trillion, covered bonds are a major source of mortgage funding in Europe. While only...