Covered Bonds Could Boost Liquidity Options, But Efficiency Is Unproven
August 15, 2008
The development of a covered bond market in the U.S. could give mortgage lenders a significant new liquidity option, but it may take a geological shift in government policy before this financing can really compete with agency securitization. The Bush administration has made a strong pitch for the industry to look for alternatives to mortgage securitization that now leans almost...