This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

Northern Rock returns to securitisation market

  • Print
  • Comments (1)

State-backed bank Northern Rock plc is planning to enter the securitisation markets for the first time since receiving a Government bailout.

The bond issue will be from the “good” bank, Northern Rock plc. The lender was split in two in January 2010.

The lender says it is looking to securitise around 2 per cent of its £18.5bn balance sheet, which works out at around £350m to £400m.

The wholesale markets accounted for 75 per cent of the former businesses’ funding at the end of 2006, which it used to increase mortgage lending.

Currently, the “good” bank Northern Rock plc is 99 per cent funded by retail deposits.

The securitisation market has dried up since the credit crisis, with investors weary of investing in bonds backed by mortgage assets.

A spokesman says: “It is about diversifying the source and term of the funding base and looking for the most cost effective source of funding.”

  • Print
  • Comments (1)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Readers' comments (1)

  • There is a "good" bank in there?

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

Second Opinion

sponsored by Bright Grey

Fund Data

Editor's Pick


Will more providers shun pensions guidance over fears of straying into advice?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments