Who now owns UK mortgages securitised by Lehmans?

usignuolo

I listened to a radio show from the states the other day about the impact of the subprime market failure. On it they explained how mortgage brokers in the states sold bundles of mortgages to investment banks who then diced and sliced them (with the support of specialist advisors) into securitised assets which they sold to institutions who were looking for a good return on their savings. This worked fine all the time they gave loans to people able to repay them and US houses held their value but when they did not, well we see the mess today.

One man they interviewed on the show was a US home owner who could not afford the repayments on his various debts and was trying to reschedule his mortgage payments. The trouble was his mortgage had been bought and sold and repackaged so many times it was not clear who owned it any longer.

Now I just read in the papers today that Lehman Brothers in the UK owned a subsidiary, "Southern Pacific Mortgage" which specialised in subprime locans and mortgages. By November 2006 Lehmans had "securitised" over £5.8bn of UK mortgages from SPM and it had mortgages coming in from other sources to securitise as well. And it was using the proceeds to lend money to the likes of Northern Rock and the Alliance and Leicester.

Can anyone tell me who now owns these securitised mortgages held/sold on by Lehman Brothers in the UK?