For many of us, an annual right of summer’s commencement, CREFC’s mid-year conference has begun in earnest for the last time in Manhattan (we’ll be in DC at this time next year). I’ll also note that for the second straight year, the conference’s first day coincides with Game 6 of a rather hotly contested playoff
Recovery
Covered Bond Update: Inching Closer?
By Crunched Credit on
Recently, while visiting my in-laws, I took a break from college basketball and the Daytona 500 and caught up on the latest developments in the quest for covered bond legislation in the United States. Not surprisingly, I quickly found that the quest for covered bond legislation is, well, still a quest.
We have discussed the possibility of covered bond legislation numerous times on this blog (see here, here, here, here, here, here, here and here). As you may recall, 2010 ushered in optimism for proponents of covered bond legislation, as both the House and Senate at least entertained the possibility. Representative Scott Garrett (R-NJ), who has long been a strong proponent, led the charge in the 111th Congress pushing a bill out of the House Financial Services Committee and in front of the full House for consideration. The Senate Banking, Housing and Urban Affairs Committee even went so far as to hold a hearing on the topic. Despite the attention, the elections and then other distractions took priority, and a lame-duck session came and went without further movement on the topic. However, the bells ringing in the new year also rung in a new round of this fight, as all interested parties are gearing up for yet another attempt to pass this legislation.Continue Reading Covered Bond Update: Inching Closer?
Vacation Induced Optimism?
By Rick Jones on
It seems that I use most of my time in this space to rail against an unthoughtful regulatory architecture that will certainly surprise and may ultimately do unintended and substantial harm to our nascent and uncertain recovery. While, from where I sit, it’s still fair to say this market continues to show little real conviction that it’s safe to get back in the water (hardly an irrational mindset) there is, periodically, some good news. So let’s make time for a bit of good news. Ta-da: It was reported recently that average consumer credit card borrowings have dropped below $5,000 per person for the first time since 2002.
This is terrific news. Perhaps not the stuff of rational giddiness, but combine that with the fact that corporate earnings are up, private cash savings rates are at recent highs, the de-leveraging is going great guns (everywhere, that is, outside of our government), house prices seem to be stabilizing in most markets even if sales continue to lag, interest rates are at ridiculously low levels and the reality of the re-set of the valuations of both the commercial and residential property stock has been internalized. A bit of optimism is not wildly inappropriate.Continue Reading Vacation Induced Optimism?