Some have suggested that European-style covered bonds are a solution to the liquidity gap in the apartment sector and could potentially replace the GSEs, Fannie Mae and Freddie Mac. 

In testimony [PDF/Video] before the Senate Banking Committee on September 15, 2010, NMHC/NAA outlines the reasons why they may be able to provide some additional liquidity to U.S. multifamily finance, but they are unlikely to provide the capacity, flexibility and pricing superiority necessary to adequately replace traditional sources of multifamily mortgage credit.