Securitisation market of last resort

The Bank of England is understandably touchy about its £50bn emergency liquidity funding for the UK banks being called a bail-out. But a bail-out is what it is - and it’s the biggest bail-out the BoE has embarked on since the 1970s. The BoE has effectively agreed to become funder of last resort for the broken UK and European mortgage and credit card securitisation markets for the next three years. Although structured as a swap for presentational purposes, the aim is to pump fresh money into the ...