Alan Boyce Testimony for Covered Bonds Hearing

This eleven-page document is the written testimony prepared by Alan Boyce for a hearing on covered bonds scheduled for December 15 by the House Committee on Financial Services (HCFS).  The title of the hearing was "Covered Bonds: Prospects for a U.S. Market Going Forward."

Boyce is CEO of Absalon, which he describes as "a joint venture between [financier] George Soros and the Danish financial system that is assisting in the organization of a standardized mortgage‐backed securities market in Mexico and elsewhere."

Topics in his prepared testimony include:

• "The benefits of covered bonds"

• "How best to design a covered bond system"

• "The need for specialized legislation"

• "The need to limit eligible cover assets to long term secured lending"

• "The need to have strict rules govern asset liability management"

• "The need for specific procedures to address both issuer and cover pool credit problems"

• "An additional approach that complements covered bonds" (i.e., the distinctive Danish model)

Also included is an appendix on the Danish approach to covered bonds.

To download a PDF of Boyce's written testimony, click on "20091215 Boyce" under "Attachment," below.