Market Perspective 03/10

The recent November 2009 private finance strategy report from the TSA identifies that £1.35billion was raised between 2008 and 2010 into bonds, but with recent issuances that figure is now approaching £2 billion, and as the alternatives queue up against traditional debt routes to financing affordable housing, the TSA must undoubtedly believe and hope, that 2010 could be the year when traditional debt is found in the rear view mirror. The bonds market and it’s derivatives are the main show in town at the moment with the recent £300m L&Q issue three times oversubscribed and the recent Genesis issue twice oversubscribed being an indication of investor interest. It will be interesting to see how the banks react to the RSL diversification into financial alternatives.