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Covered Bonds

U.S. policymakers are examining new financing mechanisms, such as covered bonds, that may offer additional alternatives to traditional securitization methods. Covered bonds are debt instruments created from high quality assets held on a bank's balance sheet. This covered bond is secured by a pool of assets (such as mortgages) known as a “cover pool.” As a secured debt instrument, a covered bond provides funding to a depository institution that retains the assets and related credit risk on its balance sheet. Interest on the covered bond is paid to investors from the issuer’s cash flows, while the cover pool serves as secured collateral. In the event of an issuer default, covered bond investors first have recourse to the cover pool. 

CRE Finance Council supports efforts to facilitate a U.S. commercial covered bond market because it believes these instruments add additional sources of liquidity that may aid in giving the markets a new and diverse funding mechanism. As such, the Council is working with Members of Congress on legislation that would include high quality commercial mortgage loans and CMBS as eligible collateral in any emerging covered bond marketplace. 

 

Featured Documents

> CREFC, Coalition Endorse Introduction of Senate Covered Bonds Bill 

>  CREFC, Coalition Support Covered Bonds Act 

> CREFC Supports Covered Bonds Act (HR 940)

> Covered Bond Act of 2011

> Analysis of Covered Bond Act of 2011

> Council, Coalition Support U.S. Covered Bonds Market

> Council Urges Support for U.S. Covered Bond Market 

> CRE Finance Council Support for H.R. 5823  

H.R. 5823 – The U.S. Covered Bond Act

> CMSA Testimony on Creating a Covered Bond Market

CMSA Supports Covered Bond Legislation 

 

Press Releases

asterisk_orange March 9, 2011
CREFC Applauds Introduction of U.S. Covered Bonds Bill 

asterisk_orange Sept. 14, 2010
Council, CRE Groups Urge Support for Covered Bond Framework

asterisk_orange July 26, 2010
Council Urges Support for U.S. Covered Bond Market 

asterisk_orange July 31, 2008 
CMSA Supports Covered Bond Legislation

July 10, 2008
CMSA Supports Covered Bond Market Development

July 2, 2008
CMSA Supports Covered Bond Market Development

 

Comment Letters & Testimony

asterisk_orange September 14, 2010  
Council, Coalition Support U.S. Covered Bonds Market 

July 27, 2010 
Coalition Supports Covered Bonds Legislation 

asterisk_orange July 26, 2010
CRE Finance Council Support for H.R. 5823 

asterisk_orange December 15, 2009 
CMSA Testimony on Creating a Covered Bond Market

June 23, 2008 
CMSA Comment Letter on Covered Bonds

        

Research / Background Documents

asterisk_orange November 18, 2011
 CREFC, Coalition Endorse Introduction of Senate Covered Bonds Bill 

 asterisk_orange June 24, 2011
CREFC, Coalition Support Covered Bonds Act

asterisk_orange May 3, 2011
CREFC Supports Covered Bonds Act (HR 940)

asterisk_orange March 8, 2011
Covered Bond Act of 2011 

asterisk_orange March 8, 2011
Analysis of Covered Bond Act of 2011 

asterisk_orange July 22, 2010  
H.R. 5823 – The U.S. Covered Bond Act

February 2, 2010 
BofA-ML Covered Bond Report  

July 30, 2008  
Text of Covered Bond Legislation

July 18, 2008
Analysis of FDIC Statement on Covered Bond Policy 

July 15, 2008 
FDIC Statement on Covered Bond Policy

June 2008 
Analysis of Covered Bonds

April 23, 2008 
FDIC NPR on Covered Bonds

 
 

 

  

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