Mission: We promote the free dissemination and open exchange of information about covered bonds among stakeholders of all sizes who seek funding and investment opportunities grounded in secured on-balance sheet lending.
Scope: Our main focus is on the United States, with occasional “border crossings” southward in the Western Hemisphere. In addition, we are beginning to explore ways of providing useful information about Canadian covered bonds, which have been developing ahead of the U.S. Our news, analysis, and resources will include developments in Europe and other parts of the world to the extent that they may contribute to a better understanding of covered bonds here.
View: We agree with those who believe that covered bonds can play an increasingly constructive and important role in North American finance. We agree it is beneficial for loan originators to retain an on-balance sheet position while accessing secondary market capital. By closely documenting the development of covered bonds as they take root and grow in North American soil—without charging the high subscription fees typical for structured finance publications—we believe we can help cultivate that growth.
With the current financial turmoil, the push for covered bonds has slowed in the U.S., but this also provides useful breathing space. To quote Tim Skeet of Merrill Lynch: “[It is] imperative that we as an industry use the extra time wisely to design and refine the U.S. covered bond product to maximize the chances of its success and energize investors to support the project once the worst of this market dislocation is behind us.”