Mortgage Securitisation (ALM)
ea Consulting Group, 2009
Securitisation of Asset Streams
Summary
- Our client was one of the five largest UK Mortgage Banks.
- The Bank needed to diversify its funding sources, and to improve its use of capital by moving mortgages off-balance sheet. As the only top 10 UK mortgage provider without this capability, it was beginning to suffer commercial disadvantage through having to reduce capital allocation to other activities within the Group. The Regulator was also concerned about its lack of capital flexibility.
- However, any solution needed to:
- Ensure that the funding strategy did not threaten the Bank's AAA-rating, and
- Have the flexibility to allow the issuing of mortgage-backed securities in different ways (through a Master Trust, via covered bonds, "originate and sell").
Please log in to view the full case study. If you haven't registered yet, you'll need to do so and must be a client (rather than a consultant) to view this content. Registration is free and only takes a minute.
