Professor Philip Lane:

Let us revert to the economics of this, which we referenced earlier. The funds have bought the loans at a discount and do not face the capital charges that banks do. In other words, the running costs of holding these mortgages is less for the investment funds than it is for the banks. That creates room. It is not obvious which way the situation will go. I respect the Deputy's point but, on the other hand, that these mortgages have a lower cost for the funds creates more room for bargaining.