UK covered bond market to shrink despite surge in mortgage lending

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UK covered bond market to shrink despite surge in mortgage lending

The UK covered bond market is likely to contract in 2016, and with concerns over Britain’s exit from the European Union likely to mount, the sterling covered bond market could prove more attractive than euros. Despite that, UK mortgage lending has been vibrant and UK issuers are expected to contribute a sizeable portion to next year’s overall covered bond supply.

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