BoE brokers MBS swap to ease tensions

The Bank of England will swap mortgage-backed securities for government bonds in a move which the Bank expects to generate £50 billion ($100 billion) worth of borrowing.

The Bank announced on Monday that it would accept a range of high-quality, but illiquid, assets including AAA-rated residential mortgage-backed securities backed by British or European mortgages in exchange for Treasury bills.

The UK's Debt Management Office will issue the bills. Each swap will be valid for a year and may be