Covered Bonds

Rates Up Third Day. Outlook Before Jobs Report.

Stocks are up (Dow +62, S&P +9) and bonds are down (FNMA 3.5% coupon -20 basis points, 10yr yield 1.96) today as jobless claims were lower a second week and European Central Bank President Jean Claude Trichet offered new support for the debt crisis in Europe: the ECB will buy covered bonds and extend bank

End of Mortgage Interest Deductions? Primer On Covered Bonds.

Occasionally I am asked, “How safe is the mortgage interest tax deduction?” In the past I was much surer of my answer (“Safe – what politician wants to take away even one of the advantages of home ownership?”), but ongoing talk of ending this homeowner tax benefit makes me think twice. Whether eliminating it for

Bernanke: Fannie/Freddie Can’t Be Completely Private

Fed chairman Ben Bernanke, speaking at a conference in Berkeley today, reminded people that without government-backed Fannie Mae and Freddie Mac, there wouldn’t be a mortgage securities market, and therefore lenders wouldn’t be able to clear their portfolios to make new loans. Fannie and Freddie have bought about 75% of all mortgages since the credit

Will Covered Bonds Redefine Mortgage Market?

The model of securitizing mortgages was born around the time of the S&L crisis and has spent the last 20 years building momentum. The problem was that the so-called high-yield mortgage backed securities were constructed from subprime loans … only they received A-paper credit ratings on a relative basis. For example subprime mortgage backed securities

What Consumers Need To Know About The New Housing Bill

HR 3221, The Foreclosure Prevention Act of 2008, passed the House of Representatives Thursday, July 24 and passed the Senate Saturday, July 26 by majority votes—the president is expected to sign it into law this week. Below are highlights of the 694-page bill that are most relevant for consumers. No More $729,750 Conforming Loans As