Here we go again…

[AtW]

“Riskier UK Mortgage Bonds Face Reckoning From Housing Turmoil

• Non-bank lender bond sales have plunged as rates soared
• Buy-to-let loans are among those exposed to risk, Moody’s says

One of the few parts of the mortgage-backed bond market that grew in the UK during the pandemic is now facing its moment of reckoning amid increasing economic turbulence.

The business of riskier securitization is shrinking, with mortgage lenders including LendInvest Plc and Keystone Property Finance Ltd. having sold only about £6.75 billion ($7.6 billion) of debt from April through the end of September, according to data compiled by Bloomberg. Those include pools of loans originated for borrowers who cannot access lending from high street banks, as well as buy-to-let transactions.
“

https://www.bloomberg.com/news/artic...?sref=o1Dqf087

Time to rewatch Big Short plus Margin Call, followed by The Boiler Room…

[vetran]

oh dear what a pity!'

A few banks etc. will lose their shirts.

[AtW]

“That move pushed up yields on interest-rate swaps, which lenders use to price mortgage products. The government’s decision on Monday to roll back the planned abolition of a higher tax band following a backlash within the Tory party has so far failed to stop rates rising.”

[_V_]

Housing market and economy safer with Labour, who would have believed it.