A U.S. market for covered bonds — touted by regulators last year as a potential alternative to securitization for financing mortgages — may be a step closer to reality.

During the debate over a broad reform bill that the House Financial Services Committee passed last week, Barney Frank, the panel's chairman, called fostering a covered-bond market "a very good idea." A measure to do so could be included in the final version of the bill, which is due for a vote this week, the Massachusetts Democrat said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.