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U.S. Covered-Bond Bill Worries Europeans
Proposed legislation for a U.S. covered bond market has begun worrying Europeans, reports Financial Times.
Proposed legislation for a U.S. covered bond market has begun worrying Europeans. The bill introduced in the House of Representatives proposes allowing a range of assets to back the bonds that is far wider than is common in Europe, where some 80% are backed by high-quality mortgages. Europeans fear that using weaker assets could tarnish the ultra-safe reputation of the bonds.