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Turnbull2000

Ft - Mortgage Securities Market About To Reopen

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http://www.ft.com/cms/s/3/86a759b2-a81a-11...html?ftcamp=rss

It’s the credit crunch circle of life. The residential mortgage-backed securities market that pushed the world into a financial hole is set to reopen. Lloyds Banking Group is betting on renewed confidence in UK house prices as it brings £2.8bn of AAA-rated RMBSs to market. Although these are not subprime packages, no chances are being taken with the sale.

At this rate, a return to 2007 prices by next Spring is looking quite possible. In the South East and London, we're perhaps already there and heading beyond (shoddy, oversupplied new build flats apart).

Edited by Turnbull2000

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...At this rate, a return to 2007 prices by next Spring is looking quite possible. In the South East and London, we're perhaps already there and heading beyond (shoddy, oversupplied new build flats apart).

yes, and perhaps not :lol: .

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http://www.ft.com/cms/s/3/86a759b2-a81a-11...html?ftcamp=rss

At this rate, a return to 2007 prices by next Spring is looking quite possible. In the South East and London, we're perhaps already there and heading beyond (shoddy, oversupplied new build flats apart).

Woooowhooo!! go Lloyds go Lloyds go go go Lloyds!!

Last one to the door sticks the lights oot! I baggs it! :lol:

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http://www.ft.com/cms/s/3/86a759b2-a81a-11...html?ftcamp=rss

At this rate, a return to 2007 prices by next Spring is looking quite possible. In the South East and London, we're perhaps already there and heading beyond (shoddy, oversupplied new build flats apart).

omg what a foolish assumption

all RMBS buyers are bothered about is whether the RMBS gets repaid, so if Lloyds only cover them by 60% mortgages then it's neither here nor there whether they think house prices will rise

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http://www.ft.com/cms/s/3/86a759b2-a81a-11...html?ftcamp=rss

At this rate, a return to 2007 prices by next Spring is looking quite possible. In the South East and London, we're perhaps already there and heading beyond (shoddy, oversupplied new build flats apart).

It'll certainly be a significant step if they manage to get it away at a decent price.

While it won't mean a return to having some competition in the mortgage market in the short term it is certainly going to speed up the emergence of new competitors.

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It'll certainly be a significant step if they manage to get it away at a decent price.

While it won't mean a return to having some competition in the mortgage market in the short term it is certainly going to speed up the emergence of new competitors.

It’s the credit crunch circle of life. The residential mortgage-backed securities market that pushed the world into a financial hole is set to reopen. Lloyds Banking Group is betting on renewed confidence in UK house prices as it brings £2.8bn of AAA-rated RMBSs to market. Although these are not subprime packages, no chances are being taken with the sale.

The safety checklist is almost as thorough as for a space launch. Already lined up are “real money†investors, including pension and managed funds; no exotic highly leveraged vehicles here. And the pricing – one tranche at 170 basis points over Euribor and the rest at 180bp over Libor – is swoonworthy. Investors are set to receive about 20 times the return they could have expected before the crisis. This, though, is still about half the levels at which similar securities traded at the height of the crisis. A successful issue should see market spreads tighten further.

so mortgage-backed securities costing the issuer 20times what they used to?

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so mortgage-backed securities costing the issuer 20times what they used to?

Of course pre-crisis they were at silly prices.... there is another way of looking at it which is that pre-crisis these things were beign offered at 9 basis points ( when mortgages were sometimes in negative territory)... now they are being offered at 180 basis points when mortgages are being offered at what 300/400 or more basis points..... you could argue that pre-crisis was the oddity..... I wonder of you go back and look at building society securitisations ten years ago what the levels of return were... we might find they were even higher than this.

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Of course pre-crisis they were at silly prices.... there is another way of looking at it which is that pre-crisis these things were beign offered at 9 basis points ( when mortgages were sometimes in negative territory)... now they are being offered at 180 basis points when mortgages are being offered at what 300/400 or more basis points..... you could argue that pre-crisis was the oddity..... I wonder of you go back and look at building society securitisations ten years ago what the levels of return were... we might find they were even higher than this.

sounds fair

it implies to me that these MBSs won't support house prices at 2007 levels, tho, as the implied interest costs to the mortgagees would be quite high (?)

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...it brings £2.8bn of AAA-rated RMBSs to market. Although these are not subprime packages, no chances are being taken with the sale.

Hmmm does this mean that none of these people with loans have vulnerable jobs then, or the LTV's are that high the bank can recover the money?

More information needed about what's bundled.

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sounds fair

it implies to me that these MBSs won't support house prices at 2007 levels, tho, as the implied interest costs to the mortgagees would be quite high (?)

I don't know how far they will go... I suspect this market if it does re-open will in future demand a very different quality of mortgage ....... genuinely aaa if there is such a thing... but I suppose we might find some kind of reversion to marign pricing levels of say ten years ago ( and I have no idea what they were).

For me I think many will be surprised that its possible that a large mortgage securitisation will be placed into the market so soon after the crisis started , but I don't for one minute think theres any appetitie for mortgages securitisation based on high LTV's, self-cert details, odd property types or anything other than a good credit profile.

We might find that we end up with much more two stream mortgage market with good risks being priced really quite cheaply and anything other than absolute prime being priced much more expensively.

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At this rate, a return to 2007 prices by next Spring is looking quite possible. In the South East and London, we're perhaps already there and heading beyond (shoddy, oversupplied new build flats apart).

All those recently unemployed people can 'snap up' a bargain.

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http://www.ft.com/cms/s/3/86a759b2-a81a-11...html?ftcamp=rss

At this rate, a return to 2007 prices by next Spring is looking quite possible. In the South East and London, we're perhaps already there and heading beyond (shoddy, oversupplied new build flats apart).

I suppose in these crazy times its possible and I have said to myself if central london still looks buoyant as we go into the spring then I will sell.... but I really don't think we'll the current rises etc held onto for long.

As for this securitisation... I do think its important and its a step along the road to perhaps more competition and therefore keener pricing ( margins are still huge on mortgages).... but the return to easy credit isn't something I think that can be realistically thought about currently.

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