Bank of Nova Scotia sold $2.5bn of covered bonds Thursday, pushing issuance of that kind of mortgage security to a record high as foreign banks step up to satisfy US investors starved of a supply of traditional mortgage-backed bonds. Foreign banks have been able to raise $11.04bn through sales of covered bonds to US investors so far this year, already exceeding the previous full-year record of $10.7bn in 2007. Covered bonds are similar to traditional residential mortgage securities but require issuers to hold the collateral on their own books rather than spin them off into quasi-independent special-purpose vehicles.
Most Popular Articles
Some housing pundits report the demand for housing is strong, while these same pundits, on another day say that we are in a housing affordability crisis. Can the two narratives be accurate at the same time?
Fortune Magazine and Great Place to Work this week announced the winners of its 2020 Best Companies to Work For list, ranking America’s best workplace environments for large companies. And multiple industry titans in the housing space made the list.