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Stock impact report

Lloyds Plans SRT Tied to £1 Billion of UK Restructured Mortgages [Yahoo! Finance Canada]

Banco Santander, S.A. Sponsored ADR (Spain) (SAN) 
Most Read from Bloomberg Lloyds is seeking credit protection on a portfolio of home loans, which are mostly performing but are subject to high regulatory capital charges because they were previously delinquent, said the person, who asked not to be named because the deal is private. The transaction, which may be priced in coming days, also includes a portion of mortgages currently in arrears, the person said. Terms of the transaction, including size, are subject to discussion with investors. A representative for Lloyds declined to comment. SRTs enable banks to hold onto loan assets and offload the risk by paying investment firms to share any potential future losses. Usually, a bank would obtain default protection for as much as 15% of portfolios, and in return investors can receive yields that frequently top 10%. Banco Santander SA is also selling an SRT linked to a portfolio of UK home loans, as part of at least a dozen of such deals the Spanish bank has in various stages of Show less Read more
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