Funding giant U.K. mortgages via the securitization market is likely a thing of the past because the market won't prove as profitable, said industry players speaking at a panel on covered bonds at the Information Management Network's and European Securitization Forum's Global ABS conference in Cannes this month.

"Most buyers of U.K. RMBS were arbitrage buyers like SIVs - they won't come back, so you have to ask who will be buying this product going forward, banks?" said Arjan Verbeek, head of covered bond structuring at BNP Paribas.

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