Securitization, Private Label & Covered Bonds!
Introducing the: USCoveredBondCouncil.Com 

USCoveredBondCouncil™

Relatively new to the United States, Covered Bonds have been used extensively throughout the world. On July 28, 2008, Treasury Paulson, the FDIC, and 4 major banks, announced their support to create a “covered bond” market that would help create liquidity. For more information visit: Joint Covered Bond Press Release

Commentary: Covered bonds are mortgage debt that remains on the balance sheet of the issuer (bank or special purpose entity). Covered bonds should attract more investment monies as they provide the investor dual recourse from the “cover pool” and the “issuer.” Also, interest (money flow) is paid from an identifiable projected cash flow, not just out of financing operations. Since, non-performing or prepaid loans must be replaced, the pool is always performing.

Origination and Development of US Covered Bonds:

Treasury_Best_Practices_for_Residential_Covered_Bonds
Covered Bond Joint_PressRelease
TREASURY best practices covered bond FACT_SHEET
TREASURY_bestpractices_PR_Covered_Bonds_28JUL08


For more information click here.