Seemingly all are agreed: Mortgages are a bad business to be in right now, what with the rising rates and inflation and generally pervasive sense of economic anxiety ringing the world. And the Bank of England has made clear that it doesn’t look to kindly on the growing concentration of the U.K. mortgage market in the hands of big banks. Which means, on both counts, Barclays is right on cue.
The British bank said it would acquire a roughly $2.4 billion loan portfolio and a servicing business for Kensington [Mortgage Company]’s target clientele of self-employed and other people with unconventional credit profiles…. Kensington’s business model has been to securitize its mortgages and issue bonds to investors, while Barclays said it intends to keep the loans on its books.
Nope, that doesn’t sound at all problematic or like history repeating itself at all.
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