Statement of Capital Research and Management Company Regarding the Covered-Bond Initiative

LOS ANGELES, July 28 /PRNewswire-USNewswire/ -- Capital Research and Management Company, the investment adviser to the American Funds, welcomes the initiative by the Treasury Department, Federal Reserve and FDIC to establish and support an effective legal and regulatory framework for covered bonds in the United States. We expect the covered-bond initiative will provide an important new source of long-term funding in the mortgage market. We also believe that the Treasury Department's best practices guide, especially its requirement for high-quality collateral, will provide the structure needed for the covered-bond market to develop over time.