2010 is the year of the the asset-backed securitization comes back.
An industry that has been down and out for the past few years during the credit crisis is now making a comeback. Underwriters and investors alike have been wary of asset-backed securities since their meltdown in 2007 and 2008.
Lloyds Banking, RBS and SNS Bank are separately planning their next mortgage securitizations.
The deals would total the equivalent of $1.5 billion to $3 billion each and would be distributed in Europe. They could start making the rounds in the next month, although the banks might want to see how other issuers in the region fare before making their moves.
All three transactions would be part of a wave of mortgage-bond issues that lenders across Europe began developing late last year, driven by a confluence of falling funding costs, gorwing financning needs, and diminishing support from central banks. In fact, Lloyds has already completed one deal in 2010, selling $3.8 billion of securities in January.