After the mortgage securitization market shut down and the Treasury Department put the GSEs Fannie Mae and Freddie Mac into conservatorship in 2008, the Treasury issued a white paper suggesting covered bonds as an alternative. The administration and Congress are currently working on enabling legislation.

The Federal Home Loan banks have issued trillions of notes and bonds collateralized by their mortgage holdings over the past three-quarters of a century without missing a single payment, and now have over $800 billion of debt outstanding.

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