Not sure it's appreciated how much the UK securitisation market was wrecked by the LDI shenanigans One of the biggest UK asset managers basically dumped a ton of stuff on the market at the beginning of the week

Gonna do a little thread on what's going on in UK specialist mortgage lending, because....it's not good. Let's start with a small press release from a small lender, Molo Finance — as of last week, it stopped writing BTL loans molofinance.com/mortgage/buy-t…

short securitization thread on some interesting goings on, starring Cerberus Capital Management and Goldman Sachs 1/ Last week saw Cerberus selling a huge chunk of its UK RMBS portfolio, through a BWIC process. Face value was around £600m, but the bonds involved were deeply subordinated, high risk instruments

here is a thing that everyone in CLOs knows, but is still kind of funny. 1/ For a few years now, ever since the European market started to switch over to cov-lite, CLOs have had a limit on the proportion of cov-lite loans in a portfolio

Ok gonna have a go at explaining how Goldman makes money writing super-prime Dutch mortgages. Probably will be v basic for securitisation people, hopefully interesting and not too wrong. The short answer is, leverage, and crystallising profits up front, but will try to work through how.

Italian NPLs - big trade, everyone piled in and....it's not going so well globalcapital.com/article/b1gd4h… The surprising thing to me is how not surprising this all is. Basically the deals that are underperforming are underperforming because of the courts taking ages to do....anything. Like even disburse cash from properties already foreclosed and sold

Hey you'll never guess what, the UK is about to do something breathtakingly stupid related to Brexit In normal language, this means, if there's a no-deal Brexit, UK banks with big EU arms (Barclays, HSBC) will see immediate, large hits to their regulatory capital and liquidity. All the EU govvies and currency they now hold won't count.