Mortgage Securitization Is About To Make A Comeback


The U.K. could be recovering from the financial crisis quicker than expected with a rumour that Barclays will be offering up U.K. mortgage bonds next month. It appears that Lloyds is also getting back into the MBS game.


Talk is circulating that Barclays will look for open-market investors to snap up a fresh batch of U.K. mortgage bonds next
month — the latest sign that Britain’s securitization industry may
finally be on the mend.

Since the credit crisis began in 2007, the U.K. market has been
on life support, kept alive largely by a repurchase program set up
by the Bank of England. In just the past few weeks, however, indi-
cations have emerged that non-government buyers are begin-
ning to come off the sidelines.

A £4 billion ($6.6 billion) mortgage securitization from Lloyds
Banking that priced Sept. 23 was the first large-scale U.K. deal in
two years to find wide acceptance among open-market investors.
And last week, Nationwide Building Society unveiled plans for a
£2.5 billion home-loan securitization aimed at a broad audience.

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