The future Looking forward, the competitive state of the current market is reflected in the fact that home lending rates have not risen by as much as funding costs. Moreover, the outlook for the smaller lenders has improved since mid 2009. The securitisation market is starting to recover, with the volume of issuance to non-AOFM investors picking up and secondary market spreads decreasing.
Here, I want to circle back to the issue of demography, because some of the developments that I spoke about earlier have the potential to shape how our society thinks about risk, innovation and change in the future. You might recall the second question I asked: how might society’s attitude to risk and innovation change as a result of ageing of the population?