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Lloyds’ RMBS deal does not prove the market is returning

I have just read that Lloyds Banking Group has launched a securitisation deal backed by mortgages from Cheltenham & Gloucester and Lloyds TSB worth £3.4bn (Mortgage Strategy Online).

It depends on the terms of the issue as to whether this indicates an opening of the market or not.

If the issue is backed by guarantees from Lloyds group it effectively keeps mortgages on the balance sheet. This is how some previous securitisation issues have been able to go ahead.

But if that is the case it doesn’t help smaller lenders that have to be able to take mortgages off their balance sheets unless they have access to longer term funding.

I would love to see this market return but fear we have some way to go yet.

Investor confidence will come back only when house prices are seen to be rising, as may be happening at the moment, and when unemployment falls, which is more doubtful given the deep public spending cuts in store.

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Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.

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