Washington Mutual becomes the first U.S. financial institution to tap into the $2 trillion European covered bond market with its launch of a €20 billion ($25.38 billion) bond program that the firm will use to fund mortgages. Banks have long raised funds in the capital markets using mortgage-backed securities, while in Europe, covered bonds have been around for three centuries. Instead of transferring assets, covered bond issuers keep the assets on their books, but guarantee payments with the assets as collateral...