Wall Street Journal (06/17/08) P. A3; Solomon, Deborah
In an effort to kick-start the struggling mortgage market, the White House is pushing a type of debt known as a "covered bond" to raise money for mortgage lending. Such bonds have been the main source of mortgage-loan funding for banks in Europe. Some analysts have forecast that a U.S. covered-bond market could mushroom to $1 trillion within the next few years. According to Treasury Secretary Henry Paulson and other officials, covered bonds are considered safe investments because they remain on a bank's balance sheet and the buyer of the bonds gets double protection.
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