Washington Mutual Bank (WMB) is set to become the first US bank to issue covered bonds. The first €3 billion issuance of what is expected to be a €20 billion programme is scheduled to be priced at the end of the month. WMB is the third-largest residential mortgage originator in the US.
“Issuing covered bonds marks a significant departure from WMB’s more traditional funding sources, notably the Federal Home Loan Banking system,” says Todd Niemy, credit analyst at Standard & Poor’s in New York. “W