London

Bill Pushes for Government Hand in Covered Bonds 

Rep. Scott Garrett (R-NJ) and Rep. Paul Kanjorski (D-PA) on Tuesday introduced the Equal Treatment for Covered Bonds Act, which urges the same legal protections and considerations for covered bonds as for other financial products. The legislation aims to make greater stability and permanence for covered bonds as a liquidity-providing investment tool. Covered bonds are distinct from securitization in many ways. The dual recourse feature, where issuers cover loses on the bonds, is more expensive and the use of bullet redemptions are not historically to the taste of American investors.