The FT today includes a useful reminder of the important role covered bonds play in Canada as well as to U.S. forces that could renew interest here in comparable constructs.  To date, ultra-low rates have combined with regulatory factors and a more than liquid agency securitization option to constrain covered-bond appetite here, but changing times warrant renewed consideration.

The full report is available to subscription clients. To find out how you can sign up for the service, click here