Excerpt from: Spot Forex
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| July 29, 2008 | | Spread bets and CFDs on the bond market | Spread betting and contracts for differences on US bonds should consider that covered bonds are getting some play in the States. Covered bonds are being pushed by Treasury Secretary Henry Paulson as a way to help the mortgage market.
What are covered bonds?
Covered bonds are an interesting financial instrument. National Mortgage News offers this definition of covered bonds:
A covered bond is a debt instrument backed by a specific pool of
mortgages. The underlying collateral is held on the balance sheet of
the institution issuing the security.
With more banks getting on board with the covered bonds programme, it may make for an interesting subject of investment or spread bets.
| Topic Tags: CFDs, contracts for differences, covered bonds, Henry Paulson, mortgage market, spread bets, spread bets bond market, spread betting, spread betting US bonds | |
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