Company Will Make Covered Bonds Eligible for Tri-Party Program

NEW YORK, July 28 /PRNewswire-FirstCall/ -- The Bank of New York Mellon, a global leader in asset management and securities servicing, announced its support for the best practices guide issued today by Department of the Treasury to encourage the growth of the covered bond market in the United States. Covered bonds are debt securities backed by cash flows from mortgages or loans that remain on an issuer's balance sheet.

As part of its support, the company said it would designate covered bonds as eligible collateral for its tri-party repo program, allowing the broker-dealer community to use covered bond holdings as a potential funding source.

'We welcome this effort by the Department of the Treasury to expand financing and liquidity in the marketplace,' said Art Certosimo, executive vice president and head of Broker-Dealer Services at The Bank of New York Mellon. 'In our role as tri-party collateral manager, we are in a unique position to bolster this effort by ensuring that covered bonds will serve as eligible collateral for broker-dealers seeking to diversify their funding options.'

The Bank of New York Mellon is the leading provider of tri-party collateral management services, servicing more than $1.7 trillion in tri-party balances worldwide. As tri-party agent, The Bank of New York Mellon maintains cash and securities accounts for borrowers and lenders of securities, verifies collateral eligibility, marks to market securities pledged as collateral, processes income and provides daily reporting to both parties.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $23 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $12 trillion in outstanding debt. Additional information is available at bnymellon.com.

This release is for informational purposes only. The Bank of New York Mellon provides no advice nor recommendation or endorsement with respect to any company or securities. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities. Depositary Receipts: Not FDIC, State or Federal Agency Insured; May Lose Value; No Bank, State or Federal Agency Guarantee.

SOURCE The Bank of New York Mellon Corporation