Thursday, Jan 29, 2009
Keep it Simple
Bloomberg: U.K. Mortgage-Bond Plan May Fail as Investors Seek Higher Yield
The U.K.’s plan to revive the market for mortgage bonds may fail because new government-backed securities may be too complex and won’t offer high enough returns, according to Calyon’s Harpreet Parhar.
“There’s no natural investor base for this product,” said Parhar, a London-based asset-backed debt analyst. “The guaranteed notes could end up being too complicated for traditional government bond investors, while the remaining asset- backed investors won’t buy it because they can get far higher yields in unguaranteed bonds.”
Posted by alan @ 11:00 AM (229 views) Add Comment
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
No comments have been submitted.
Be the first person to add your comment by completing the form below.