Funding for Lending extension stokes fears of longer RMBS slump

Changes made on Wednesday to the UK Funding for Lending Scheme to boost small-to-medium enterprise lending should not shrink the already low-level of UK SME ABS issuance, but London-based bankers remain angered by the squeeze the FLS has had on UK residential mortgage securitisation, and fear a protracted RMBS issuance slump into 2014.