Cicero Consulting director Iain Anderson says potential plans to merge US government-backed mortgage lenders Freddie Mac and Fannie Mae will have a significant impact on the UK securitisation market.
In recent weeks, the US Treasury has been holding meetings to come up with a way of reviving the two lenders without hurting the taxpayer, with one plan suggesting merging the two institutions into one agency.
Anderson says the UK securitisation market would be affected by the move but it is unclear whether the impact will be positive or negative.
He says: “I think any new model is likely to be largely privatised so it is bound to be looked at by UK policymakers. Clearly, when that model starts to operate in the market, it could have a significant impact in terms of the global securitisation markets. It is difficult to work out if that is bad or good but it will certainly have an impact on the UK marketplace.”
Home Funding chief executive Tony Ward says: “The US and UK markets are different. I do not think that you can really look at what is happening in the States and read it across to the UK.”