Paragon published its half-year results for the year ended March 31 and said it plans to return the securitization market again.
The U.K. buy-to-let mortgage lender has not been in the market since 2007. It has since funded its mortgage originations through a £200 million ($328.44 million) revolving warehouse provided by Macquarie Bank.
"Paragon is explicit in its belief that its intention is to use the facility to warehouse loans prior to arranging term funding in the securitization markets," said Barclays Capital analysts.
"We would expect a new Paragon deal to see good investor appetite, as investors are afforded the option of diversifying into a new sector, that has not been seen since prior to the crisis, as well as comfort in the performance of Paragon and U.K. buy-to-let transactions as a whole – even through-out the crisis."
Paragon stated its profit before tax increased 34.8% to £39.5 million, compared with £29.3 million in 1H10. It alsostated that it had a successful mortgage lending re-launch and expects 2H11 to be a strong period for new completions.