Treasury's 'Best Practices' For Residential Covered Bonds

In this 36 page official document, the Treasury Department "seeks to bring increased clarity and homogeneity to the U.S. Covered Bond market by developing a series of Best Practices." Its guidance was designed to serve as a starting-point for development of that market, together with FDIC’s policy statement, in the absence of covered bond legislation.  You can download a PDF of the “Best Practices” document by clicking on “20080728 Treasury-Best Practices for CBs” under “Attachment” below.

Treasury’s release of the “Best Practices” guidance was accompanied by a four-page combination fact sheet and press release:  “Treasury Releases Best Practices for Residential Covered Bonds.”

Also, several major law firms wrote analyses of the “Best Practices.”  Two of them are:  “Covered Bonds: Understanding Treasury’s Best Practices” (from Thacher Proffit & Wood LLP) and “Treasury Encourages the Development of Covered Bonds in the U.S. and Issues ‘Best Practices’” (from Davis Polk & Wardwell).