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Edeus still active in whole loan market

Edeus says it is still completing asset sales but is not publicising them as it does not want to give competitors information about its deals.

Managing director Alan Cleary says its warehouse lines are due for renegotiation in the latter half of the year.

Cleary says: “In fairness, in this market it is not that relevant because we are controlling our lending to fairly low volumes. We are well within our warehouse agreements in terms of amounts.”

Chief executive Michael Bolton told Money Marketing last November that it was set to “virtually empty” its £1.2bn warehouse line with the completion of a whole loanbook sale to a building society at the start of 2008.

Cleary says: “We are still doing that but we are not publicising it because the market is so competitive. Not in a million years will we tell anyone who we are trading with but we are trading our assets as planned. It is so competitive that I would not want to give any of our competitors any headway.”

Cleary confirms that Edeus held a staff meeting last Friday but says this was to keep its staff updated on the state of the market. He says there are no plans to make more job cuts.

Questions have been raised over whether Edeus would be able to put up the capital that banks look set to require in the new-style warehouse lines that are beginning to be offered. This would see lenders provided with a £100,000 warehouse line but they would need to show they had £7,000 of capital.

Cleary says: “I think that is inevitably going to be one of the routes that the market takes. Businesses will have to put up more equity behind warehouse lines. We will have to worry about that at the time.”

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