By Covered Bond Investor™ Staff
Calling covered bonds “one of the most affordable wholesale funding instruments for financial institution asset-liability management,” the Mortgage Bankers Association (MBA) has included support for them in its just-announced legislative and regulatory priorities for 2010.
The organization’s official statement (Jan. 12) reads in part:
“MBA supports legislation and regulation to provide for equal treatment of covered bonds with other qualified financial contracts. Covered bonds are debt securities backed by cash flows from mortgages that remain on the issuer’s consolidated balance sheet. Covered bonds provide an additional source of liquidity for residential and commercial real estate financing. READ MORE>>
http://www.coveredbondinvestor.com/news/us-covered-bonds-mbas-legislative-agenda-2010