Split views on UK RMBS secondary prices following stamp duty cut

By Tom Brown
15 Jul 2020

UK RMBS traders have split views on whether a stamp duty tax cut will raise the price of the bonds on the secondary market, with commentators divided on whether banks tightening their lending criteria will cancel out a house-buying incentive brought on by the tax slash on July 8.

UK chancellor Rishi Sunak announced on July 8 that the government will raise the threshold levy for stamp duty payments to £500,000 until March 31, 2021 with immediate effect – upping the threshold from £125,000, or £300,000 for first time buyers. 

The conditional prepayment rate (CPR) of ...

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