View more on these topics

A&L moves to calm fears over sub-prime exposure

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.”

Recommended

Out of Context

“I’m more than happy to ambush you all.”Compliance consultant Adam Samuel would do anything to hang out with the MM team “If you are not going to be clear and transparent when operating a wrap, then you may as well substitute the w in wrap for a c.”Seven Investment Management marketing director Justin Urquhart Stewart […]

Cofunds confident despite £11m loss

Cofunds made a further loss of £11.5m last year but says its revenue is rising faster than its assets and costs are stable.The platform says it is keen to broaden its product range and is looking at offering annuities and drawdown products.Finance director Andrew Harris says Cofunds will bed in the cash account it is […]

Cavanagh announces 38 per cent profit increase

Cavanagh Group has announced a pre-tax profit of £712,000 for the first six months of 2007, up 38 per cent from the same period in 2006. The firm also saw turnover increase to £7,739,000, up from £7,068,000 for the first half of 2006.Chairman John Campbell says the firm’s earlier business decision to reduce initial commission […]

Morrisons stacks up for MacIver

Prudential has lost three key members of its executive team over the past few weeks with insurance business director Angus MacIver the latest to announce his departure.Director of intermediated distribution Dave Harris left last month for personal reasons and intermediaries director Tudor Taylor is due to leave in October to pursue other opportunities.MacIver, who was […]

Choose life…

Sarah Scott  – Marketing Consultant, Royal London  This month sees the return of Renton, Sickboy, Begbie and Spud in the sequel to the film Trainspotting. Just over 20 years later, we return to see exactly how life treated the characters whose lifestyle was less than ideal back in 1996. Did they choose a job, choose […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment