The Case for Covered Bonds: An Alternative Funding Model for the US Mortgage Market
23 Pages Posted: 24 Jun 2009
Date Written: June 24, 2009
In this paper we highlight the salient features of Covered Bonds in relation to MBS, and argue for their introduction to the US market accompanied with the appropriate legislative structure and oversight. The Covered Bond market has the potential of adding significant measure of stability to the banking system while becoming an important source of long-term funding for residential and commercial mortgage loans in the United States.
JEL Classification: G11, G12, G15
Suggested Citation: Suggested Citation