Covered Bonds - new answer for European SME finance woes???

interesting article in this weeks Financial News by Edward Russell Walling (unfortunately only available by subscription) about the proliferation of covered bonds to inject life into the frustratingly sluggish European SME lending market.  this new asset class may suit this situation well, in which cross-country regulatory differences, weaknesses in securitisation laws, and wariness about old style securitisation may make these vehicles useful  The loans stay within the bank, giving investors dual recourse to both the bank borrowing from them and to the assets in the loanbooks.  Commerzbank was first with a euro 500 million issue early in 2013, but the markets been quiet since.  however, I heard new proposals from the French at the G20 Riyadh conference in March, and the Spanish and Italians also have plans, according to this article.  welcome contributions from our readers with more direct knowledge of the situation! matt