Brokers demand return to tranche lending

AToM says a return to releasing pre-priced tranches of funds would eliminate problems with securing products, which has been a major issue since the beginning of the credit crunch. As a result of nervousness in the credit markets, many lenders were forced to withdraw their products for re-pricing, and some have still not secured funding for further product ranges. This caused problems for brokers who were not able to secure funding for their clients’ loan applications. Atom says by releasing small, pre-priced tranches, both brokers and lenders know the price of the deal but also accept i...