US and UK financiers have hitherto made little use of covered bonds, but the strength of security they offer means they may help to restore liquidity to the stricken mortgage markets, as Jeremy Jennings-Mares and Peter Green explain
Covered bonds have been widely used in continental Europe for centuries, yet completely ignored in the UK and the US until a few years ago. British and American interest in them has recently heightened, with many seeing covered bonds as a possible means of breathing new life into the mortgage financing market.
