{"id":4537,"date":"2017-03-03T15:37:55","date_gmt":"2017-03-03T20:37:55","guid":{"rendered":"http:\/\/www.us-covered-bonds.com\/staging\/9690\/?page_id=4537"},"modified":"2026-09-06T15:27:48","modified_gmt":"2026-09-06T19:27:48","slug":"home-page","status":"publish","type":"page","link":"https:\/\/www.us-covered-bonds.com\/staging\/3708\/site-archives\/home-page\/","title":{"rendered":"Home-old2"},"content":{"rendered":"\u00a0<!-- To defeat Gutenberg and prevent changes to page -->\r\n<\/div><\/div><\/div>\r\n<div class=\"home-box\" style=\"width:1180px;\">  <!---------------------HOME PAGE BOX------------------------------------------------>\r\n<hr class=\"Fhspace\" style=\"clear:both; background-color:white; height:1px;\">\r\n\r\n<div id=\"target-header\" style=\"background-color: #000066; width: auto;\">\r\n<h1 style=\"color: white; margin: 0; font-size: 150%; text-align: center;\"><strong>Covered Bonds in the United States &#8211; Latest News<\/strong><\/h1>\r\n<\/div>\r\n<hr class=\"Fhspace\" style=\"clear:both; background-color:white; height:3px;\">\r\n<!--------------------------------------Header Photos---------------------------------------------------------------->\r\n<!---DELETED GUTENBERG TO RESTORE FORMATTING ------------------------------------------------------------------------>\r\n\r\n<a href=\"CBAggregate\/\">\r\n<!---[metaslider id=3641]--->\r\n<!--<img decoding=\"async\" loading=\"lazy\" src=\"wp-content\/uploads\/2014\/02\/Monterrey-Bay-2-e1406395381447.jpg\" title=\"Monterrey Bay\" border=\"0\" width=100%  \/>-->\r\n<!---<img decoding=\"async\" loading=\"lazy\" title=\"U.S. Supreme Court\" src=\"wp-content\/uploads\/2014\/02\/Supreme-Court-e1405958907602.jpg\" alt=\"\" width=100% border=\"0\" \/>--->\r\n<!---<img decoding=\"async\" loading=\"lazy\" src=\"wp-content\/uploads\/2014\/02\/Library-of-Congress.jpg\" title=\"U.S. Library of Congress\" border=\"0\" width=100% \/>--->\r\n<!---<img decoding=\"async\" loading=\"lazy\" src=\"wp-content\/uploads\/2013\/12\/pine-cone.jpg\" width=100%  border=\"0\" \/>--->\r\n<!---<img decoding=\"async\" loading=\"lazy\" src=\"wp-content\/uploads\/2018\/08\/Washington-Monument-at-dusk-e1534722797351.jpg\" width=100% title=\"WW II Memorial and Washington Monument at Dusk\" \/>-->\r\n<!---<img decoding=\"async\" loading=\"lazy\" src=\"wp-content\/uploads\/2020\/01\/Onepixel_878720-scaled.jpg\" width=100% title=\"WW II and Lincoln Memorials at Dawn\" \/>--->\r\n<!--<img decoding=\"async\" loading=\"lazy\" src=\"wp-content\/uploads\/2019\/01\/Onepixel_33642-e1547740528637.jpg\" width=100% title=\"U.S. Capitol\" \/>-->\r\n<img decoding=\"async\" loading=\"lazy\" src=\"wp-content\/uploads\/2020\/01\/Onepixel_34240-scaled.jpg\" width=100% title=\"U.S. Capitol\" \/>\r\n<\/a>\r\n<!---------------------------------------end Header Photos---------------------------------------------------------->\r\n\r\n\r\n<!------------------------------------------START------------------------------------------------------------------->\r\n<hr class=\"Fhspace\" style=\"clear:both; background-color:blue; \">\r\n\r\n<section class=\"home-container\" style=\"width: auto; float: left\">  <!--container for content and twitter -->\r\n<div class=\"Fcontainer j1col2\" style=\"float: right; width: 95%;\" >   <!--container for content-->\r\n<div class=\"Fbox\" width=100% >\r\n<!---------------------------------------Page Date--------------------------------------------------------------->\r\n<p style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Updated: 3\/24\/2021<\/p>\r\n<\/div>\r\n<!---------------------------------------SOME STYLES------------------------------------------------------------->\r\n<style scoped>\r\nimg.j2photo {float:left; padding-right: 0.5em; padding-bottom: 0.5em;}\r\nimg.j3photo {padding-left: 0.5em; padding-bottom: 0.5em;}\r\narticle, li .Fcontainer {text-align:justify;}\r\n.Fcontainer {\r\n    border-style:  solid;\r\n    border-color: white green green white;\r\n    border-width: 2px 2px 3px 2px;\r\n}\r\nhr {\r\n    margin-top: 10px; \r\n    margin-bottom:10px;\r\n    height: 3px;\r\n    background-color: blue;\r\n}\r\n.j1col4 {\r\n    -webkit-column-gap: 20px; \/* Chrome, Safari, Opera *\/\r\n     -moz-column-gap: 20px; \/* Firefox *\/\r\n     column-gap: 20px;\r\n}\r\nimg.j1infog {\r\n      margin: 5px 0 5px 0;\r\n      width: 100%;\r\n     }\r\n<\/style>\r\n\r\n<hr class=\"Fhspace\" style=\"clear: both; margin-top: 3px;\">\r\n<!---------------------------------------INFOGRAPHIC---------------------------------------------------------------->\r\n<div style=\"float:left; width:74%;\"> \r\n<br \/><strong>See Mayer Brown&#8217;s <a href=\"wp-content\/uploads\/2021\/03\/Covered-bonds-2021.pdf\" target=\"blank\" rel=\"noopener noreferrer\"><p style=\"margin-right: 5px;\"><u>Covered Bonds &#8211; At A Glance<\/u><\/a> for U.S.$ covered bond statistics for the period 2010 through 2020.<\/br><\/br>Noteworthy is the heavy retained issuance in 2020 in C$ for repo with the Bank of Canada.<\/strong><\/p>\r\n<\/div>\r\n<div style=\"float:right; width:26%;\">\r\n<a href=\"wp-content\/uploads\/2021\/03\/Covered-bonds-2021.pdf\" target=\"blank\" rel=\"noopener noreferrer\">\r\n<img decoding=\"async\" loading=\"lazy\" class=\"j1infog\" src=\"wp-content\/uploads\/2021\/03\/Covered-bonds-2021.jpg\" margin-top=\"5\"  align=\"right\"  \/>\r\n<\/a><\/div>\r\n<!--------END INFOGRAPHIC---->\r\n<hr class=\"Fhspace\" style=\"clear: both; margin-top: 20px;\">\r\n<!---------------------------------------COMMENTARY------------------------------------------------------------------->\r\n<p style=\"color: #3366ff; text-decoration: underline; background-color: #b5c7e2;\"><strong>Commentary<\/strong><\/p>\r\n<!----------------------->\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Mar 2020- <\/scan><strong>Recent Posts.<\/strong> <br> See our most recent posts on covered bonds:<br>\r\n<ul><li><a href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2020\/03\/22\/covered-bonds-flight-to-quality\/\" target=\"_blank\" rel=\"noopener noreferrer\">Covered Bonds &#8211; Flight to Quality<\/a><\/li><li><a href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2020\/03\/17\/sub-prime-mortgage-loans\/\" target=\"_blank\" rel=\"noopener noreferrer\">Subprime Mortgage Loans as Scapegoat?<\/a><\/li><li><a href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2020\/02\/14\/videos\/\" target=\"_blank\" rel=\"noopener noreferrer\">CB Conference Videos<\/a><\/li><li><a href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2020\/02\/16\/eu-covered-bond-framework\/\" target=\"_blank\" rel=\"noopener noreferrer\">EU Covered Bond Framework<\/a><\/li><li> <a href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2020\/02\/16\/u-s-legislation-in-2020\/\" target=\"_blank\" rel=\"noopener noreferrer\">U.S. Legislation in 2020<\/a><\/li><li><a href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2019\/01\/08\/u-s-housing-overview\/\" target=\"_blank\" rel=\"noopener noreferrer\">U.S. Housing Overview<\/a><\/li>\r\n<\/ul>\r\n\r\n\r\n<hr>\r\n<img decoding=\"async\" loading=\"lazy\" class=\"j2photo\" title=\"U.S. Capitol\" src=\"wp-content\/uploads\/2019\/01\/Onepixel_3081326.jpg\" border=\"0\" width=40%  \/>\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jan 2019- <\/scan><strong>The American Banker<\/strong> is <a href=\"https:\/\/t.co\/kL8eQyljrw\" target=\"_blank\" rel=\"noopener noreferrer\">reporting<\/a> that \u201cThere\u2019s now a confluence that\u2019s been built around the need to really do a deep dive on national housing policy itself, which housing finance is just one important element,\u201d according to David Jeffers, the executive vice president of policy and public affairs at the Council of Federal Home Loan Banks. \r\n\r\n\r\n<hr>\r\n<img decoding=\"async\" loading=\"lazy\" class=\"j2photo\" title=\"Freddie Mac\" src=\"wp-content\/uploads\/2014\/02\/icon_freddiemac_campus_HQ1c.jpg\" border=\"0\" width=40%  \/>\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jan 2019- <\/scan><strong>Urban Institute Report on U.S. Housing. &nbsp;<\/strong>See our new post ( <a href=\"http:\/\/us-covered-bonds.com\/2019\/01\/08\/u-s-housing-overview\/\" target=\"_blank\" rel=\"noopener noreferrer\">U.S. Housing Overview.<\/a>) on the Urban Institute Report on U.S. housing and the dominance of the GSEs in housing finance. &nbsp; The GSEs are virtually the only game in town. &nbsp;Is that risk to the taxpayers worth it? &nbsp;Why?\r\n\r\n<hr>\r\n\r\n<div style=\"float:left; width:45%; padding-right: 5px;\"><img decoding=\"async\" loading=\"lazy\" class=\"j2photo\" title=\"New York Federal Reserve Bank\" src=\"wp-content\/uploads\/2018\/12\/frbny_building_preview.jpg\" border=\"0\" width=100% \/><\/div>\r\n\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Dec 2018- <\/scan><strong>NY Fed Study on Housing Finance &nbsp;<\/strong>The New York Federal Reserve Bank has released an <em>Economic Policy Review<\/em> entitled <a href=\"https:\/\/www.newyorkfed.org\/medialibrary\/media\/research\/epr\/pdf2\/epr_2018_vol24no3.pdf?la=en\" target=\"_blank\" rel=\"noopener noreferrer\">The Appropriate Role of Government in U.S. Mortgage Markets<\/a>. &nbsp;Given the conservatorships of Fannie Mae and Freddie Mac, one wonders why it took so long to ask this question. &nbsp;Nevertheless, this review represents a welcome attempt to inject some rationality into U.S. housing finance.  As the Economist <a href=\"https:\/\/www.economist.com\/briefing\/2016\/08\/20\/comradely-capitalism\" target=\"_blank\" rel=\"noopener noreferrer\">reported<\/a> yesterday, we have accidentally nationalized the U.S. mortgage market at a  cost of something like one percent of GDP annually. &nbsp;It is high time to rely more on the private capital markets and less on government fiat for housing finance. &nbsp;The Economist believes the taxpayer savings would be substantial. <\/br><\/br>Starting on page 63 there is a  comparison of U.S. and Danish mortgage financing and a recommendation that policy makers look at the Danish use of capital markets to finance mortgage loans using covered bonds.\r\n\r\n<hr>\r\n<img decoding=\"async\" loading=\"lazy\" class=\"j2photo\" title=\"White House\" src=\"wp-content\/uploads\/2018\/08\/White-House.jpg\" border=\"0\" width=40%  \/>\r\n\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">July 2018- <\/scan><strong>GSE Progress? &nbsp;<\/strong>The White House has proposed a plan for reorganization of the Government, which includes a <a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2018\/06\/Government-Reform-and-Reorg-Plan.pdf\" target=\"blank\" rel=\"noopener noreferrer\">plan for reorganization of the GSEs<\/a> that has a political twist that might actually make a difference. &nbsp;&#8220;Reform of the Federal Role in Mortgage Finance&#8221; begins in page 79 of the White House proposal. &nbsp;The plan would fully privatize Fannie Mae and Freddie Mac and give them access, together with other private entities, to a Government guarantee for a fee. Under the plan a new Federal entity would create and regulate a market for Federal guarantees. <\/br><\/br>The interesting political twist is that Fannie Mae and Freddie Mac would not longer be responsible for assisting low income borrowers.  &nbsp;Instead that role would shift to the Department of Housing and Urban Development. &nbsp;Fannie and Freddie would lose their Federal charters and would no longer be the focus of political infighting over federal assistance for low income residential mortgage loan borrowers. &nbsp;Perhaps with the removal of that responsibility Fannie and Freddie will become less political and some real progress could be made in creating a rational structure for providing Federal support for residential mortgage loans. \r\n\r\n<hr>\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jan 2018- <\/scan><strong>What a difference a year makes! &#8211; <\/strong>As we move into 2018 there isn&#8217;t a whisper of covered bond legislation in the United States. &nbsp; Nothing!  &nbsp; The resurrection of the GSEs in their old form seems to on the agenda.  &nbsp; Amazing how short memories are.  &nbsp; All is forgiven.  &nbsp; $180 billion of bail-out cash is no big thing. &nbsp; We could do it again if need be, but of course this will never happen again. &nbsp; Everyone is born again!  &nbsp; And what is the definition of &#8220;madness&#8221;? \r\n<hr>\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jul 2017- <\/scan><strong>Six Months In &#8211; <\/strong>After strong rumors in January, there has been no subsequent discussion of covered bonds in this administration. &#038;nbspThere has been some indication that the administration will tackle the GSEs, but no movement. &#038;nbsp<a href=\"https:\/\/www.congress.gov\/bill\/115th-congress\/house-bill\/10?q=%7B%22search%22%3A%5B%22hr10%22%5D%7D&#038;r=1\" target=\"_blank\" rel=\"noopener noreferrer\">The Financial Choice Act<\/a> passed the House on June 8, but seems to have little support in the Senate. &#038;nbspIt addresses primarily repeal of portions of Dodd-Frank, but doesn&#8217;t address the GSE. &#038;nbspAll of the energy is spent on health care and taxes.  There is little left for housing finance.\r\n<hr>\r\n<img decoding=\"async\" loading=\"lazy\" class=\"j2photo\" title=\"U.S. Capitol\" src=\"wp-content\/uploads\/2018\/08\/arches-architecture-building-62318.jpg\" border=\"0\" width=40% \/>\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jan 2017- <\/scan><strong>New Administration &#8211; <\/strong>what does it mean? Still too early to tell.  Treasury Secretary-designate Mnuchin indicated in his confirmation hearing testimony that the administration intended to move to address Fannie Mae and Freddie Mac.  There has also been some quiet indications that covered bonds are again on the agenda.  However, it is still early days, too early to know if covered bonds will play a role in a new housing finance system.<\/p> \r\n<hr>\r\n<p><scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Nov 2016- <\/scan><strong>Trump won?! What!?<\/strong>  Really?! Whoa!  Now what? And what does it mean for covered bonds? What does it mean for the GSEs?  Good questions! But not questions we have answers to right now.  It&#8217;s too soon.<\/p>\r\n<p>It would not be a surprise to see the Republicans in Congress tackle GSE reform.  But the nature of the reform is not clear.  It is likely that some reduction in the role of the Government in housing finance would be part of the reform, but this will be a contentious issue with the Democrats and one they might filibuster in the Senate, so it will take some support from Democrats to reach a 60-vote majority needed to defeat a filibuster.  That means compromise somewhere to bring in the necessary Democrats.<\/p><br>\r\n<p>The covered bond picture is more nuanced.  First, the role of the GSEs in housing finance has to be reduced before the banks will look to other means of finance for mortgage loans.  Second, the champion of covered bonds over the last six years has been <strong>Representative Scott Garrett (R-NJ)<\/strong>, who was defeated in the election and will not be returning to the House next year.  There is no apparent successor to pick up the baton.  With an expected heavy focus on reducing banking regulation, covered bond legislation may never see the light of day.  So keep your fingers crossed for someone to perceive the benefit of covered bonds in a changed housing finance framework.<\/p><hr>\r\n<!----------------------->\r\n    <scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">July 2016- <\/scan><strong>2016 <\/strong> is of course a Presidential election year in the United States. It seems pretty unlikely, therefore, that we will see any progress in 2016 on covered bond legislation, in part also because it is unlikely we will see any movement on GSE reform.  Particularly GSE reform turns on the outcome of the election and covered bond legislation seems closely tied to GSE reform.  See <a href='2015\/07\/06\/why-is-cb-legislation-tied-to-gse-reform' target='_blank' rel=\"noopener noreferrer\">Why is CB legislation tied to GSE reform?<\/a>  Unfortunately, it looks like a long wait until 2017 for covered bond legislation in the United States, notwithstanding the positive comment from Rep. Scott Garrett (see below).<hr>\r\n<!----------------------->\r\n    <scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Nov 2015- <\/scan><strong>Rep. Scott Garrett<\/strong> <a href=\"http:\/\/www.nationalmortgagenews.com\/news\/secondary\/theres-still-a-case-for-covered-bonds-says-rep-garrett-1065793-1.html\" target=\"_blank\" rel=\"noopener noreferrer\">reportedly<\/a> told the audience at a mortgage industry conference in New York on November 12 that with the lifting of the federal debt ceiling it might be possible now to pass a covered bond bill in the Senate. The conference was the <a href=\"https:\/\/www.imn.org\/structured-finance\/conference\/Private-Label-RMBS\/\" target=\"_blank\" rel=\"noopener noreferrer\">2nd Annual Private Label RMBS Reform Symposium<\/a>, sponsored by the <a href=\"http:\/\/www.sfindustry.org\/\" target=\"_blank\" rel=\"noopener noreferrer\">Structured Finance Industry Group<\/a> and IMN.<hr>\r\n<!----------------------->\r\n         <scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Feb 2015- <\/scan><strong>Why do investors like covered bonds?<\/strong> &#8211; <a href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2015\/02\/20\/why-do-investors-like-covered-bonds\/\">What is it about covered bonds?<\/a><hr>\r\n<!----------------------->\r\n\t <scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Feb 2015- <\/scan><strong>Why not covered bonds?<\/strong> &#8211; <a title=\"Why not CBs\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2015\/02\/16\/why-not-covered-bonds\/\">What&#8217;s to lose?<\/a><hr>\r\n<!----------------------->\r\n\t<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jan 2015- <\/scan><strong><font color=\"red\">Congress schedules covered bond review. <\/font><\/strong> With the beginning of the new  Congressional term, the House Financial Services Committee released its <a href=\"http:\/\/financialservices.house.gov\/uploadedfiles\/114thcongressovplan.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Oversight Plan<\/a>, which includes a statement that the &#8220;<i>Committee will examine the potential for covered bonds to increase mortgage and broader asset class financing, improve underwriting standards, and strengthen U.S. financial institutions<\/i>.&#8221; &nbsp;See the related<a href=\"http:\/\/news.coveredbondreport.com\/2015\/01\/hfsc-plan-puts-covered-bonds-back-on-us-agenda\/\" target=\"_blank\" rel=\"noopener noreferrer\"> article<\/a> posted on January 23 in The Covered Bond Report.<hr>  \r\n<!----------------------->\r\n       <strong>Canada Housing Overvalued<\/strong> &#8211; <a title=\"Canada Housing\" href=\"http:\/\/www.bankofcanada.ca\/2014\/12\/press-release-fsr-101214\/\">The Bank of Canada reports that Canadian housing is up to 30% overvalued.<\/a>   <a title=\"Canada Housing2\" href=\"http:\/\/www.bankofcanada.ca\/2014\/12\/press-release-fsr-101214\/\">However, the Bank says that household imbalances remain the most important risk to stability.<\/a><hr>\r\n<!----------------------->\r\n\t<strong>Use CBs to Restore PLS<\/strong> &#8211; <a title=\"Restore PLS\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2014\/09\/11\/use-cbs-to-restart-the-pls-market\/\">Can covered bonds assist the recovery of the PLS market by allowing the GSEs to shrink faster?<\/a><hr>\r\n<!----------------------->\r\n\t<strong>GSE Reform<\/strong> &#8211; <a title=\"GSE Reform\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/Commentary-1#GSE-Reform\">A disquieting process<\/a><hr>\r\n<!----------------------->\r\n\t<strong>Mortgage Rates<\/strong> &#8211; <a title=\"Competitive Lenders\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/Commentary-1#Competitive-Lenders\">Are they uncompetitive?<\/a><hr>\r\n<!----------------------->\r\n\t<strong>US Legislation<\/strong> &#8211; <a title=\"US Legislation \u2013 The Long Gestation\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/legislation-1\/\">Why is legislation taking so long? Does the U.S. not see the benefit of covered bonds?<\/a><hr>\r\n<!----------------------->\r\n\t<strong>Pass-Through CBs<\/strong> &#8211; <a title=\"Miscellaneous News\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/miscellaneous-new#pass-through-covered-bonds\">Given the long RMBS history in the U.S. would pass-through covered bonds work here?<\/a><hr>\r\n<!----------------------->\r\n\t<strong>Housing Bubble? <\/strong><a title=\"Commentary\" href=\"canadian-news#Bubble\">Is there a housing bubble in Canada?<\/a>\r\n\r\n\r\n<hr class=\"Fhspace\" style=\"clear: both; margin-top: 20px;\">\r\n<!---------------------------------------NON-CANADA US$ ISSUERS------------------------------------------------------------------->\r\n<p style=\"color: #3366ff; text-decoration: underline; background-color: #b5c7e2;\"><strong>Non-Canada US$ Issuers<\/strong><\/p>\r\n<!----------------------->\r\n        <scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jun 2017- <\/scan><strong>The first half of 2017 <\/strong>has seen issuance from Deutsche Pfandbriefbank AG (twice), LBBW, United Overseas Bank, DnB Boligkreditt, Stadshypotek AB, and SR Boligkreditt for a <a href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2017-1h-non-canada\/\" target=\"_blank\" rel=\"noopener noreferrer\">total of $5.3 billion<\/a>. &#038;nbspIssuance volume and frequency is largely determined by cross currency swap costs. \r\n<hr class=\"Fhspace\" style=\"clear: both; margin-top: 20px;\"\/>\r\n<!-------------------------------HOT TOPICS------------------------------------>\r\n<p style=\"color: #3366ff; text-decoration: underline; background-color: #b5c7e2;\"><strong>Hot Topics<\/strong><\/p>\r\n\r\n\t<strong>CBs as HQLA<\/strong> &#8211; <a title=\"CBs as HQLA\" href=\"miscellaneous-new#HQLA\">should covered bonds qualify in U.S. as high quality liquid assets for LCR purposes?<\/a><hr>\r\n\t<strong>Encumbrance<\/strong> &#8211; <a title=\"why such a hot topic?\" href=\"legislation-concerns#Encumbrance\">why such a hot topic?<\/a><hr>\r\n\t<strong>Anemic RMBS<\/strong> &#8211; <a title=\"Anemic RMBS\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2013\/12\/\">CMBS and CLOs are booming, but not RMBS. What does that tell us<\/a>?\r\n\r\n<hr class=\"Fhspace breakbefore\" style=\"clear: both; margin-top: 20px;\">\r\n\r\n<!----------------------------------------------------------------------------------->\r\n<!-----------------------------CANADIAN ISSUERS-------------------------------------->\r\n<!----------------------------------------------------------------------------------->\r\n<style scoped>\r\ntable#CDN2016 {background-color:#e6ccb2; border-collapse: collapse; margin:0;}\r\ntable#CDN2016 th {width:80px; font-weight: bold; font-size: 100%; font-family:georgia; text-align:center;}\r\ntable#CDN2016 td {border: solid 1px black; text-align:center;}\r\ntable#CDNcapacity {background-color:#e6ccb2; border-collapse: collapse; margin:0;}\r\ntable#CDNcapacity th {width:80px; font-weight: bold; font-size: 100%; font-family:georgia;text-align:center;}\r\ntable#CDNcapacity td {border: solid 1px black; text-align:center;}\r\ntable#CDNmax {background-color:#e6ccb2; border-collapse: collapse; margin:0;}\r\ntable#CDNmax th {width:80px; font-weight: bold; font-size: 100%; font-family:georgia;text-align:center;}\r\ntable#CDNmax td {border: solid 1px black; text-align:center;}\r\n<\/style>\r\n<div class=keeptogether>\r\n\r\n<p style=\"color: #3366ff; text-decoration: underline; background-color: #b5c7e2;\"><strong>Canadian Issuers<\/strong><\/p>\r\n<a><img decoding=\"async\" loading=\"lazy\" id=\"j1mleaf\" src=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/wp-content\/uploads\/2013\/12\/maple-leaf.png\" alt=\"maple leaf\" width=\"25%\" align=\"right\" \/><\/a>\r\n     <scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jun 2017- <\/scan><strong>2017 <\/strong>started off strong for the Canadian banks with six offerings by the ninth of January and two more in March. &#038;nbspHowever, since then they have been quiet, with no issuance at all. &#038;nbspCanadian &#8216;bail-in&#8217; proposals have been <a href=\"http:\/\/www.fin.gc.ca\/n17\/17-057-eng.asp\" target=\"_blank\" rel=\"noopener noreferrer\">published<\/a> and that may account for some their absence from the market as they reconsider their funding strategies.\r\n<hr>\r\n<scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Dec 2016- <\/scan>\r\n<strong>2016<\/strong> was a good year for Canadian issuance of covered bonds.  Canadian banks came to the market with 34 offerings of covered bonds in $, \u20ac, \u00a3, C$ and A$ currencies. &#038;nbspFive of those offerings were reopenings of existing series of covered bonds by CIBC, RBC and TD. &#038;nbspThe distribution of offerings across currencies was as follows:<\/br>\r\n\r\n<table id=CDN2016>\r\n<thead><th>Currency<\/th>\t<tH># Offerings<\/th>\t<th>Amount<\/th><\/thead>\r\n<tbody>\r\n<tr><td>\u20ac<\/td>\t<td>14<\/td>\t<td>12,861<\/td><\/tr>\r\n<tr><td>$<\/td>\t\t<td>6<\/td>\t\t<td>9,250<\/td><\/tr>\r\n<tr><td>C$<\/td>\t\t<td>3<\/td>\t<td>4,500<\/td><\/tr>\r\n<tr><td>\u00a3<\/td>\t\t<td>10<\/td>\t\t<td>2,625<\/td><\/tr>\r\n<tr><td>A$<\/td>\t\t<td>1<\/td>\t\t<td>400<\/td><\/tr>\r\n<\/tbody><\/table>\r\nSee <a href=\"cdn_issue_details\">Canadian Issuance<\/a>.<hr>\r\n<\/div>\r\n<!----------------------->\r\n     <scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Feb 2016- <\/scan><strong>Change Canada&#8217;s 4% Limit?<\/strong> OSFI is apparently considering raising the 4% of total assets limit on the issuance of covered bonds. See <a href='osfi-4-limit'>OSFI to Reconsider 4% Limit?<\/a><hr>\r\n<!----------------------->\r\n \r\n     <scan style=\"font-family: 'Georgia'; font-variant: small-caps; font-size: 80%; font-weight: bold; margin: 0 0 0.625% 0; padding:0; border:0; line-height:70%\">Jan 2016- <\/scan><strong>2016 <\/strong>began with a flurry of Canadian offerings. <u>Seventeen offerings<\/u> in all in the first two weeks; <u>six covered bonds<\/u>: TD Bank CBL10 (\u20ac1.000B), RBC CB28 (\u20ac0.100B), CIBC Tap CBL8 (\u20ac0.100B), BNS CBL11 (\u00a30.400B), BMO CBL7 (\u20ac1.500B), BNS CBL12 (\u20ac1.500B); and <u>eleven senior notes<\/u>: BNS $1.000B, $0.500B,  <a href='' target='_blank' rel=\"noopener noreferrer\">\u20ac0.050B<\/a>,  <a href='http:\/\/tools.morningstar.co.uk\/tsweu6nqxu\/globaldocuments\/document\/documentHandler.ashx?DocumentId=103555892' target='_blank' rel=\"noopener noreferrer\">\u00a30.300B<\/a> and  <a href='http:\/\/tools.morningstar.co.uk\/tsweu6nqxu\/globaldocuments\/document\/documentHandler.ashx?DocumentId=103875316' target='_blank' rel=\"noopener noreferrer\">\u20ac1.500B<\/a>; \r\n  <a href='http:\/\/tools.morningstar.co.uk\/tsweu6nqxu\/globaldocuments\/document\/documentHandler.ashx?DocumentId=103744228' target='_blank' rel=\"noopener noreferrer\">BMO \u00a30.217<\/a>; TD Bank $0.750B and $0.500B; and <a href='http:\/\/www.sec.gov\/Archives\/edgar\/data\/1000275\/000121465916008853\/p112160424b2.htm' target='_blank' rel=\"noopener noreferrer\">RBC $1.250B<\/a>,  <a href='http:\/\/tools.morningstar.co.uk\/tsweu6nqxu\/globaldocuments\/document\/documentHandler.ashx?DocumentId=103744124' target='_blank' rel=\"noopener noreferrer\">\u20ac500<\/a> and  <a href='http:\/\/tools.morningstar.co.uk\/tsweu6nqxu\/globaldocuments\/document\/documentHandler.ashx?DocumentId=103446465' target='_blank' rel=\"noopener noreferrer\">\u00a3200<\/a>. See <a href='cdn_issue_details' target='_blank' rel=\"noopener noreferrer\">CDN Issue Details<\/a> and <a href='mtns' target='_blank' rel=\"noopener noreferrer\">MTNs<\/a>.  A pretty remarkable showing in a volatile market for the start of 2016. Perhaps the best commentary on the overall market conditions one day last week came from Citibank MD Laura Drumm: <em>&#8220;Well, that was ugly &#8230;&#8221;.<\/em>\r\n     \r\n<hr class=\"Fhspace\" style=\"clear: both; margin-top: 20px;\" \/>\r\n<!------------------------REGULATORY DEVELOPMENTS-------------------------------------->\r\n<p style=\"color: #3366ff; text-decoration: underline; background-color: #b5c7e2;\"><strong>Regulatory Developments<\/strong><\/p>\r\n\r\n\t<strong>BCBS<\/strong> &#8211; <a title=\"Basle Securitization\" href=\"http:\/\/www.bis.org\/press\/p141211.htm\">Basle has announced increased capital requirements for securitization exposures.<\/a>  <a title=\"Basle Securitization\" href=\"http:\/\/www.bis.org\/bcbs\/publ\/d303.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">See the full report.<\/a><hr>\r\n\t<strong>Final Risk Retention<\/strong> &#8211; <a title=\"Risk Retention\" href=\"http:\/\/www.mofo.com\/~\/media\/Files\/ClientAlert\/2014\/10\/141021USRegulatorsFinalizeCreditRiskRetentionRules.pdf\">The SEC has finalized its risk retention rule for securitizations.<\/a> &nbsp;<a href=\"http:\/\/www.gpo.gov\/fdsys\/pkg\/FR-2014-12-24\/pdf\/2014-29256.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">See the full text of the final rule. <\/a><hr>\r\n\t<strong>Reg AB II and Covered Bonds<\/strong> &#8211; <a title=\"Reg AB II\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2014\/10\/08\/reg-ab-ii-and-covered-bonds\/\">Generally Reg AB II is not going to apply to covered bonds. Canadians?<\/a><hr>\r\n\t<strong>Final Reg AB II<\/strong> &#8211; <a title=\"Final Reg AB II\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/2014\/08\/29\/sec-finalizes-reg-ab-ii\/\">SEC finalizes the amendments to Regulation AB<\/a><hr>\r\n        <strong>U.S. Treasury<\/strong><a title=\"Treasury\" href=\"http:\/\/www.regulations.gov\/#!docketDetail;D=TREAS-DO-2014-0005\"> &#8211; United States Department of the Treasury has requested comments on the private sector development of a well-functioning private label securities (PLS) market for residential mortgage loans. <\/a><a href=\"http:\/\/www.gpo.gov\/fdsys\/pkg\/FR-2014-06-30\/pdf\/2014-15355.pdf\"> See the original request.<\/a><hr>\r\n\t<strong>LCR in Canada <\/strong><a title=\"Commentary\" href=\"canadian-news#LCR\">Covered bonds qualify for LCR Level 2A.<\/a><hr>\r\n\t<strong>Volcker Rule<\/strong> &#8211; <a title=\"Volker Rule\" href=\"miscellaneous-new#volker-rule\">only <em>foreign<\/em> bank covered bonds are carved out of the prohibitions in the rule?<\/a>\r\n\r\n<hr class=\"Fhspace\" style=\"clear: both; margin-top: 20px;\" \/>\r\n\r\n<!----------------------------------TECHNICAL------------------------------------------------>\r\n<p style=\"color: #3366ff; text-decoration: underline; background-color: #b5c7e2;\"><strong>Technical Notes<\/strong><\/p>\r\n\r\n<ul style=\"margin: 0 0 0 1;\">\r\n\t<li><a title=\"Technical Notes\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/technical-notes#ECB-eligibility\">ECB Eligibility<\/a><\/li>\r\n\t<li><a title=\"Technical Notes\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/technical-notes#FED-eligibility\">FED Eligibility<\/a><\/li>\r\n\t<li><a title=\"Technical Notes\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/technical-notes#BOE-eligibility\">BOE Eligibility<\/a><\/li>\r\n\t<li><a title=\"Technical Notes\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/technical-notes#TRACE-eligibility\">TRACE Eligibility<\/a><\/li>\r\n\t<li><a title=\"Technical Notes\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/technical-notes#INDEX-eligibility\">INDEX Eligibility<\/a><\/li>\r\n\t<li><a title=\"Technical Notes\" href=\"http:\/\/www.us-covered-bonds.com\/staging\/9690\/technical-notes#LCR-eligibility\">LCR Eligibility<\/a><\/li>\r\n<\/ul>\r\n<hr class=\"Fhspace\" style=\"clear: both; 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