Alliance & Leicester has sought to calm investor fears over its exposure to the US sub-prime crisis in an update on the London Stock Exchange.
The move comes a week after A&L head of specialist mortgages Jeremy Claridge told Money Marketing that lenders must be more open about their exposure to US sub-prime business and claimed the market was spooked because lenders had not been open enough.
A&L says it has invested around £390m in a variety of structured investment vehicles although only a small proportion was exposed to potential losses.
It also says it has been operating a conduit facility totalling around £770m invested in a variety of structured credit assets, including collateralised debt obligations and collateralised loan obligations.
The bank says its exposure to structured credit products containing US sub-prime mortgages is £175m.
A&L says: “Current conditions in the funding and liquidity markets have had no material impact on either profits or franchise growth.”