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Lloyds launches £3.4bn RMBS deal

Lloyds Banking Group has launched a securitisation deal backed by mortgages from Cheltenham & Gloucester and Lloyds TSB worth £3.4bn.

The residential mortgage-backed securities deal is made up of prime loans with an average LTV of 65% and has been issued through the bank’s Arkle master trust programme.

It represents the first deal issued by Lloyds group using C&G and Lloyds TSB mortgages since May 2007.

The pool of loans backing the deal is made up of 315,535 mortgage accounts with a balance of £31.27bn.

Lloyds group has already launched two securitisations over the last year through a separate vehicle called the Permanent programme, which uses mortgages originated by its HBOS subsidiary.

The first deal of £4bn was issued last September, with a second issuance in January worth £2.5bn.


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  • Paul 5th May 2010 at 10:06 am

    There is much said about the bail out by taxpayers but has anybody considered the alternative, the collapse of the banking system? Doesn’t bear thinking about. To me the bail out was a no brainer. the state acquired a massive stake in an established financial institution for rock bottom money, and by doing so stabilised the system which meant the investment was pretty much protected. Once the shares rise which they will do, and substantially then they can be sold for a massive profit. Why did Warren Buffet throw $5bn plus into a so called failing American bank. for the very same reasons, massive profit and the fact that he alone showed faith meaning stabilisation. There was never a chance that the government would actually need to pay the sums, just underwrite it. Its about time they cme out and issued some figures as I am sure the profits will be massive when the time comes to sell.

  • Andy Roo 4th May 2010 at 9:02 pm

    and just how much of the sale proceeds will go to paying back the taxpayers that bailed them out, precious little, I wager!!

  • Dark Haired Underwriter 2nd May 2010 at 3:49 pm

    Depends on the terms of the issue as to whether this indicates an opening of the market. If the issue is backed by guarantees from Lloyds it effectively keeps the mortgages “on balance sheet”. This is how some previous securitisation issues have been able to happen. However, if this is the case it doesn’t yet help the smaller lending companies who need to be ablt to take the mortgages off balance sheet [unless they have access to significant retail/longer term funding]. Above most others I would love to see this market returning but fear we have some way to go on this yet. Investor confidence will return but only when house prices are seen to be rising, as may be happening at the moment and when unemployment is falling, which is subject to far more doubt, given the likely nature of the public spending cuts that are on the way after the general election.

  • Paul Mayer 30th April 2010 at 7:22 pm

    In other words the banks are returning to bad practice. There is something fundamentally wrong where those who assess the risk, don’t take the risk!

  • Paul 30th April 2010 at 4:25 pm

    At last signs of the securitisation market coming back to life. Without it we will never see a return to anything resembling a fully functioning market. Now all we need is investors brave enough to take on sub prime RMBS, fuly aware of what they are, and pricing accordingly. Once this happens then the specialist sector can return. Fingers crossed