‘TLGP-secured’ a mixed blessing for covered bonds

Michael Krimminger, special advisor for policy, office of the chairman of the Federal Deposit Insurance Corp, told delegates at IMN's Global Covered Bonds conference in London on Friday that the FDIC hopes that its proposed addition of a collateralised element to the Temporary Liquidity Guarantee Programme could act as a stepping stone to the issuance of covered bonds in the US. But covered bond bankers are skeptical, and think that the term covered bond should be used with caution in the context of the FDIC’s proposal.