Charlie Stromeyer Jr

Covered Bonds Are Indeed Covered - By You

Good point, but IIRC it was the Belgian economist Daniel Gros who discovered that European housing tends to lag U.S. housing by an average 18-24 months which is the underlying fundamental reason why covered bonds have been doing poorly in Europe where there is a large market for covered bonds.

Note that Hank Paulson is not a real economist, but he ought to learn at least something about economics before he opens his big yap!

Disclosure: No current positions in any covered bonds.