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SIFMA today released the following statement from Kenneth E. Bentsen, Jr., executive vice president, public policy and advocacy, on the United States Covered Bond Act introduced by Senators Hagan, Corker, Schumer and Crapo:
“SIFMA reiterates it strong support for a dedicated us covered bond legislative framework and applauds the Senators for their leadership in introducing the United States Covered Bond Act in the Senate. SIFMA believes that covered bonds are a proven source of funding that could help expand the availability of credit for households and strengthen the domestic housing market. Foreign financial institutions have more recently ignited domestic U.S. investor interest through issuance of U.S. dollar denominated covered bonds. U.S. financial institutions have not, however, been able to tap that same investor demand. We believe a dedicated legislative covered bond framework will provide investors with the certainty necessary for a robust covered bond market to develop in the U.S. Efforts to further support sustained economic growth should ensure that financial intermediaries have more rather than fewer tools at their disposal to maintain a constant flow of credit through the economy.”
