Archive for the ‘Tent’ tag
Paulson Encourages Covered Bond Market to Increase Mortgage Financing
Treasury Secretary Henry Paulson said Monday that
covered bonds are an answer to financial market’s request for clarity. He
said covered bonds, a $3 trillion market used widely in Europe for
mortgage funding, can develop without legislation in the U.S., and four
of the largest U.S. banks are already prepared to set up the market.
“I believe covered bonds have the potential to increase
mortgage financing, improve underwriting standards, and
strengthen U.S. financial institutions by providing a new funding source
that will diversify their overall portfolio,” Paulson said.
Revisions Boost New Home Sales, Suggest Stabilization, Economists Say
U.S. new home sales fell marginally in June but the pace was much
higher than expected due to +50k of revisions over the past three months.
Economists were surprised by the report and said it may
be a tentative sign of stabilization, though more data will be needed to
confirm that.
Sal Guatieri, senior economist at BMO Capital Markets, said the
report “paints a brighter picture (than previously portrayed), in the new
housing market anyway.” Yet he cautioned against being too optimistic, as
things are still getting worse but only at a slower decline than in the
past two years.