Lloyds TSB may build its own asset-backed commercial paper conduit to help its corporate banking clients raise off-balance sheet debt. David Brealey, London-based head of securitization and corporate finance, says that at present the firm uses third-party asset-backed CP conduits, but creating its own, which would be $5 billion in size, could be cost-effective. Lloyds uses two CP conduits structured by other firms, and Brealey declined to name the outside firms or the amount of assets allocated to them. To head up the development of conduit capabilities, Lloyds has hired Mark Escott as director of securitization. He joins from Bank Gesellschaft, where he held a similar role. Brealey says that if the firm decides to go forward with the CP conduit, more hires will be made in the new year. Lloyds' securitization team currently has 18 members.
Lloyds Considers $5 Billion Conduit, New Hires