Thursday 11 October 2012

Remember mortgage-backed securities? France does.

(Full story)


PARIS | Thu Oct 11, 2012 6:22pm BST
Oct 11 (Reuters) - French mortgage lender Credit Foncier is to kicks off a securitisation programme that will see it sell around 1 billion euros ($1.29 billion) in mortgage debt in the coming weeks, the bank's chief told Reuters on Thursday.
The move comes as Europe's banks seek to cut their balance sheets in the face of tougher regulation and a sputtering economy. It could be a sign of confidence for a French market mortgage-backed securities market which has been slow to recover from the 2008 financial crisis.
"We will very soon launch a first securitisation programme of mortgage bonds...We are working on an initial size of around 1 billion euros," Credit Foncier CEO Bruno Deletre said in an interview, adding insurers and other funds had shown interest.

(Reporting by Lionel Laurent and Matthias Blamont)

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