Covered Bonds: No Silver Bullet for Troubled U.S. MBS Market, But a Plausible Option
September 26, 2008
Covered bonds have never looked so good to the U.S. mortgage industry, now that the non-agency MBS market is in tatters and the long-term prospects for Fannie Mae and Freddie Mac are up for grabs.But despite a push from the federal government and encouraging words from Wall Street, experts aren’t yet willing to call covered bonds a sure bet. “This is a tough environment to launch a new...