ASF hopeful treasury submission will open door to Aussie covered bonds

The Australian Securitisation Forum (ASF) believes a submission it has made to federal treasurer Wayne Swan could pave the way for Australian banks to issue covered bonds. Most significantly, the ASF argues that increased depositor protection in Australia is enough to counter the concerns of the Australian Prudential Regulation Authority (APRA) that covered bonds could subordinate retail depositors in the event of bank failure.