Another Day, Another Financial Term

This time, it's "Covered Bond", and Sec Treasury Paulson is clarifying regulation to make them more attractive in the United States. (They are more common in Europe, particularly, according to the Wiki, Germany)

The difference between this and more common mortgage backed securities is that the banks have to keep the mortgages on their books, and the bonds are specifically secured with these bonds.

I don't think that this will make much of a difference.

Until house prices bottom out in absolute dollar terms, which means that inflation might save us, the housing market will remain sluggish to frozen.