Last week’s £500m issue of mortgage-backed securities by the UK bank HBOS caused a tremor in banking circles. It is effectively the first such deal in Europe since the credit crisis struck. Is securitisation back?

Alas, probably not. But it is a vital question. Domestic mortgages lie at the heart of the market, accounting for about half of Europe’s €1,300bn (£1,035bn) stock of securitised assets.