In press reports this week Portman group development director Matthew Wyles warned that sub-prime lenders, and especially new players to the market, relying on securitisation business models will collapse quickly if the market is subject to a shock.
But Bolton says the market has already priced up a worsening credit situation and is anticipating a deterioration in asset quality.
He adds that most of the lifeboats launched by the industry over the last 20 years have been to rescue failing building societies and Edeus has got more man-years of experience in the market than any other lender in the UK.
He says: “It is highly irresponsible of Matthew to be quoted in this context and I wonder what our trade body would have to say about somebody who is allegedly high up in an organisation coming out with such damning, unsubstantiated remarks in terms of the credibility of our market.”
Wyles says: “The point that I have made still stands which is that in a bear market where people stop wanting to buy mortgage-backed securities, if you can only fund by selling mortgage backed securities you have a problem.
“It’s not unsubstantiated – if you read my remarks it is clear that what I was doing was underlining the fact that lenders that are exclusively dependent on securitisation may face limitations in the future and, as I say, that’s not an opinion that’s a fact.”