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Major UK Banks Preparing to Swap £80-90B in Mortgage Assets With BOE, Says FT |
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European Economy |
Written by CEP News |
May 16 08 11:22 GMT |
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(CEP News) London - Some of the biggest names in the UK banking sector are preparing bids to exchange £80 to £90 billion worth of mortgage-backed assets for UK Treasury bills with the Bank of England, according to a Financial Times report published on Friday.
Citing sources in the country's debt market, the FT report quotes an amount which is almost twice as much as the £50 billion put on offer by the BOE at the time of the release of its Special Liquidity Scheme in April. FT's sources said the banks had approached credit rating agencies on the issue of structuring the deals which will receive the 'AAA' (triple A) rating required for securities swaps for Treasury bills. These can then be used to raise fresh capital. The Bank of England declined comment on what it described as "press speculation." By Gaurav Sharma,
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, edited by Cristina Markham,
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