Tuesday, May 20, 2008
Is this a thaw ?
Bloomberg: HBOS Sells First U.K. Mortgage-Backed Bonds This Year
"HBOS Plc, Britain's biggest mortgage bank, sold £500 million of bonds secured by U.K. mortgages, the first public sale of the debt since credit markets seized up last year".
Posted by alan @ 08:51 PM (955 views) Add Comment
8 Comments
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1. hpwatcher said...
Would anyone be mad enough to buy them?
Lets just wait, and watch what happens.
2. icarus said...
Average LTV is only 61%. Sounds as though it should be fairly safe, yet investors still want 0.8% over Libor.
3. Tartaglia said...
a drop in the bucket
4. enuii said...
This is probably the cream of the crop, which makes one wonder about the mortgages that are stuck on the Halifax's balance sheet.
5. dohousescrashinthewoods said...
Or it's the exception that proves the rule.
If the single thing that sold is top-whack, low LTV and at .8 over LIBOR, then the market truly has choked.
6. bystander said...
Some of this could still be well diluted toxic waste - who gave it it's rating and how much were they paid??? Has anything really changed??
7. crash bandicoot said...
Mortgage backed securities are not in themselves a bad investment, but securities backed by 6x salary, 125%LTV mortgages are. Selling the rubbish on was the only way that such ridiculous loans could be made. With the return to sensible lending there will be a return to securitisation. It still means that the outstanding rubbish remains as rubbish though.
8. wiltshire said...
Bystander, I just caught a glimpse of the front page of tomorrow's FT on the end of Newsnight and the second biggest news item was something about major questions over Moody's ratings.
The financial markets are going to have to be given root and branch reforms when all this is over or no-one will ever be able to trust the system ever again.