Lehman Brothers is believed to be working with Hong Kong's Pan Asian Mortgage Company Pamco on a securitization of negative equity mortgages. Although it is bank policy to not comment on market speculation or deals it is working on, FinanceAsia has heard from a number of Asian securitization bankers that it is an open secret that Lehman has had the mandate for some time.
A source at Pamco declined to substantiate the story but admitted the company will continue to look at securitization opportunities. I cannot really comment other than to say that we are looking at the possibility of doing a deal backed by negative equity mortgages, the official says.
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