Covered Bonds May Someday Play Major Role In Mortgage Finance, But Look for Slow Start
August 15, 2008
Federal regulators are pushing loudly for the development of covered bonds backed by home mortgages, but their cautious approach on bond collateral, less-than-ideal regulatory structure and stiff competition from other funding sources suggest a slow ramp up to speed. With support from the Treasury Department, the Federal Deposit Insurance Corp. earlier this year announced an interim...