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The other day I briefed a German friend on U.S. political realities affecting the prospects for enacting federal covered bond legislation that could help in establishing a market in this country.  The points I made included these:

Spencer Punnett1) The concept of covered bonds has become somewhat identified with Republicans in Washington because in 2008, covered bonds were publicized (some say promoted) by the Bush administration as a potential source of home mortgage funding here.

Among the throng at last week's covered bond conference in Copenhagen was Tim Skeet, head of covered bonds for Bank of America Merrill Lynch and one of the industry's best-known figures.  In Europe, he is senior advisor to the Covered Bond Investor Council (CBIC) of the International Capital Markets Association (ICMA) and serves as the ICMA's UK Regional Chairman.  In North America, he is a member of the Steering Committee of the U.S. Covered Bonds Council.  Here are his observations on the Copenhagen event:

KANSAS CITY, MO —  My participation at the inaugural Financial Policy Conference held at the Federal Reserve Bank of Kansas City Friday (June 19) came both as a speaker and an attendee.  The fact that organizers wanted the covered bonds angle to be represented is another sign that the topic remains on the public agenda in the U.S.

Recently a friend sent an email asking for an explanation of what the Federal Deposit Insurance Corporation's (FDIC's) Covered Bond Policy Statement is all about—in the plainest English possible.

Editor's Note: Jerry Marlatt helped engineer the first issuance of covered bonds in U.S. history (by Washington Mutual).  Currently senior of counsel in the New York office of the Morrison & Foerster law firm, he also serves on the Steering Committee of the U.S. Covered Bonds Council.  Today, in the last of a four-part series, he takes a look ahead at the possibility of a U.S.