JP Morgan said this week that its buyside survey shows that U.S. investor participation in U.K. RMBS has increased since September 2011.
Survey participants reflect the overall mix of the ABS investor base and includes asset managers (43%), banks (28%), and insurance companies (19%).
The results show that the participation rate in U.K. RMBS has increased since the bank's last survey to 50% from roughly 40%.
But the survey also showed that 23% of the respondents have not purchased UK RMBS and do not have the mandate to do so. "A few investors see a lack of value in the sector, do not have the resources to invest in the asset class, or have certain concerns on fundamentals — U.K. housing market and seller/servicer risks — regarding the market," analysts said.