Covered Bonds: Features and Proposals

by Wei Zhao, Chan Li

Overview

This book examines the features and proposals of residential covered bond utilization and future issues for the 112th Congress. Covered bonds are a relatively common method of funding mortgages in Europe, however uncommon in the United States. A covered bond is a recourse debt obligation that is secured by a pool of assets, often mortgages. The holders of the bond are given additional protection in the event of bankruptcy or insolvency of the issuing lender. Because some believe that the subprime mortgage turmoil may have been influenced by poor incentives for lenders using the securitization process, some policymakers have recommended covered bonds as an alternative for U.S. mortgage markets. Although covered bond contracts are not prohibited in the U.S., some policymakers believe that legislation and agency rulemaking could facilitate the growth of a domestic covered bond market.

Product Details

ISBN-13:	9781614701187
Publisher:	Nova Science Publishers, Incorporated
Publication date:	10/01/2011
Series:	Congressional Policies, Practices and Procedures Series
Edition description:	UK ed.
Pages:	161
Product dimensions:	6.10(w) x 9.30(h) x 0.60(d)

Table of Contents

Preface vii

Chapter 1 Covered Bonds: Issues in the 112^th Congress Edward V. Murphy 1

Chapter 2 Testimony of Scott A. Stengel, before the U.S. House Subcommittee on Capital Markets and Government Sponsored Enterprises, Hearing on "Legislative Proposals to Create a Covered Bond Market in the United States" 21

Chapter 3 Testimony of Bert Ely, before the U.S. House Subcommittee on Capital Markets and Government Sponsored Enterprises, Hearing on "Legislative Proposals to Create a Covered Bond Market in the United States" 41

Chapter 4 Statement of Tim Skeet, Board Member of the International Capital Market, Association 1, before the U.S. House Subcommittee on Capital Markets and Government Sponsored Enterprises, Hearing on "Legislative Proposals to Create a Covered Bond Market in the United States" 61

Chapter 5 Statement of Ralph Daloisio, Managing Director, Natixis, on behalf of the American Securitization Forum, ASF Covered Bonds Subforum, before the U.S. House Subcommittee on Capital Markets and Government Sponsored Enterprises, Hearing on "Legislative Proposals to Create a Covered Bond Market in the United States" 79

Chapter 6 Testimony of Stephen G. Andrews, Bank of Alameda, before the U.S. House Subcommittee on Capital Markets and Government Sponsored Enterprises, Hearing on "Legislative Proposals to Create a Covered Bond Market in the United States" 95

Chapter 7 Statement of the Federal Deposit Insurance Corporation, before the U.S. House Subcommittee on Capital Markets and Government Sponsored Enterprises, Hearing on "Legislative Proposals to Create a Covered Bond Market in the United States" 101

Chapter 8 Best Practices for Residential Covered Bonds The Department of the Treasury 113

Chapter Sources 143

Index 145