Uncovering US covered bonds

Shortly after, the US Treasury announced its best practices guide for US covered bonds, mirroring the FDIC’s guidelines and making a few additions. The main ones are the limit on eligible mortgages to include only performing, first-lien mortgages with a maximum LTV of 80%, and the restriction of geographic concentration in a single metro area to 20%. Citi, Bank of America, JPMorgan, and Wells Fargo issued a joint statement of support, fuelling optimism for the successful establishment of a US covered bond market.