"Fair Treatment of Covered Bonds Under Basel III," by Mauricio Noé

"[T]o all you Government bonds out there — we wanna be like you, we wanna walk like you, talk like you, too."

That comment was written by Deutche Bank's Mauricio Noé, speaking on behalf of covered bonds in language echoing lyrics from Disney's Jungle Book movie.  It is part of a one-page opinion piece that Noé wrote for the April issue of Mortgage Info, which is published by the European Mortgage Federation.

Mauricio NoeNoé's piece relates to certain proposals on liquidity and funding in a consultation paper released by the Basel Committee on Banking Supervision in December 2009, which "have caused some major consternation" in covered bond circles.  In a mild tone, Noé argues that the proposed "Bear Stearns" and "Northern Rock" provisions would impose unduly harsh treatment of covered bonds.

To download a PDF of "Fair Treatment of Covered Bonds Under Basel III — It's the Bear Necessities," click on "Noe 20100400" under "Attachment," below.