U.K.-based HBOS does not want to issue residential mortgage-backed securities at current spread levels, according to the bank’s head of securitization and balance sheet management, reports Reuters UK. “We wouldn't be prepared to pay the prices,” said Ian Stewart. Stewart added that a lack of demand for the product has affected price. He also cited the structured covered bond market as an alternative option to the RMBS market. HBOS usually plans two residential mortgage-backed issues a year, each sized between £4-5 billion ($8.27-$10.33 billion).
HBOS Avoiding RMBS Market At Current Spread Levels