FLS SME Extension May Have Little Impact, But Sustained Resi Slump Feared (UPDATE)

Changes made on Wednesday to the U.K. Funding for Lending Scheme to boost small-to-medium enterprise lending should not materially impact the already low-level of U.K. SME asset-backed securities issuance, but London-based bankers remain angered by the squeeze the FLS has had on U.K. residential mortgage securitization, and fear a protracted RMBS issuance slump into 2014.