Securitization

Bernanke Pushes Covered Bonds as GSE Alternative 

In wide-ranging remarks that admitted the fundamental breakdown of the mortgage financial machine, Federal Reserve chairman Ben Bernanke last week discussed the three big-picture options now on the table as they relate to both Fannie Mae [stock FNM][/stock] and Freddie Mac [stock FRE][/stock] in particular, and as they relate to mortgage finance, in general: privatization of the GSEs, nationalization of the GSEs, and the development of a viable covered bond market.