View more on these topics

Prime securitised arrears double

Three-month arrears within prime UK residential mortgage-backed securities doubled over the last 12 months and are set to continue rising, according to figures from Moody’s.

The rating agency found that, within UK prime RMBS, loans in arrears of 90 days or more accounted for 1.8 per cent of all loans, up from 0.9 per cent in the second quarter of 2008.

It says: “With the UK economy in recession and unemployment, personal insolvencies and house possessions all rising sharply, the performance of prime mortgages is likely to continue to deteriorate.”

Moody’s also found that despite the rise in arrears, repossessions within the securitised loans fell marginally, which it attributes to greater forbearance by lenders.

Three-month arrears in Granite, Northern Rock’s securitisation vehicle, almost quadrupled to 4.67 per cent of all loans in the second quarter of this year from 1.27 per cent in Q2 2008.


Old Mutual friend

The bond market remains a hot topic in investment circles and I have recently had two very interesting conversations with Stewart Cowley, head of fixed interest at Old Mutual and manager of the Old Mutual global strategic bond fund.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm