Riskier Mortgage Bonds Thrive Off U.K. Pandemic Property Boom
- Deals backed by non-prime loans dominate over safer collateral
- ‘Bullish conditions’ are encouraging borrowers to ramp up
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The business of mortgage securitization is getting a jolt from U.K. pandemic aid and a housing boom that’s favoring lower-end borrowers.
Non-bank lenders have sold more than 17 billion pounds ($24.2 billion) of debt pooling non-conforming and buy-to-let loans, the most in at least four years, according to data compiled by Bloomberg. That’s more than double the amount sold during the whole of 2020.