Law firm Heller Ehrman LLP has formed a covered bonds practice in response to a growing interest from clients and a growing influence by regulators. The newly formed practice includes lawyers from the firm's structured finance, capital markets, restructuring and insolvency, real estate and finance, and securities groups.
Regulators' efforts to increase the use of covered bonds as an alternative form of financing recently culminated in two pronouncements: the U.S. Treasury Best Practices for Residential Covered Bonds and the FDIC Policy Statement on Covered Bonds, which prompted inquires from mortgage loan originators, investment banks and investors.
With significant experience with mortgage-backed securities and mortgage-backed bonds, Heller Ehrman says it is one of the few firms positioned to advise clients on covered bonds transactions by addressing the business, legal and regulatory issues that arise in these transactions.
The company has been involved in the issuance of covered bonds by Washington Mutual, one of the two U.S. banks that have issued covered bonds.
Source: Heller Ehrman LLP