Submitted on Wednesday 28th May 2008
HBOS securitisation leads the way
HBOS the group that contains lenders such as Halifax Bank of Scotland and BM Solutions completed the securitisation of £500m residential mortgage backed securities in a deal through the Permanent Master trust programme. The investors were banks and insuranc ecompaniesfrom the UK and overseas.
This is the first deal of its kind since July 2007 and is good news for the UK mortgage market and in particular HBOS. If lenders can securitise their mortgages it means they have more money to lend to new borrowers.
The deal was done at 0.85% above libor which is pricey compared to past deals and will be difficult to make a good profit on. Credit to Halifax for showing the market it can be done but it will be difficult for less significant players to replicate this in the current market
