Financial Times FT.com

US covered bonds set for comeback

By Nicole Bullock and David Oakley in New York

Published: November 4 2009 18:19 | Last updated: November 4 2009 18:19

As the market for securitisation remains largely stalled throughout the world, one kind of asset-backed product is enjoying a renaissance.

The covered bond market has taken off in Europe as issuance this year has surged past the entire total for 2008, according to Dealogic. The European Central Bank kick-started the market in May when it pledged to buy €60bn ($89bn) of these securities to revive the eurozone economy.

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