View more on these topics

Rock bids to end sub-prime panic

Northern Rock is trying to calm investors’ fears over its exposure to the US sub-prime crisis which has seen its share price halve since its March high.

In a statement to the stockmarket, Rock says its total investment in US collateral-ised debt obligations and mortgage-backed securities represent just 0.24 per cent of its total reported assets of £113bn.

It has £200m exposure to US CDOs and £75m to MBSs.

Rock’s share price has fal-len from its 12-month high of 1258p to 621p. Although it has seen a rise in the last week, trading remains volatile, with the price between 689.50p and 734.50p on Tuesday.

Hamptons managing director Jonathan Cornell says Rock may see growth slow as it may have to increase pricing while balance-sheet lenders are able to cut rates on fixed products.

He says: “Out of all the prime lenders, Northern Rock has the greatest exposure to the wholesale markets.”

A Rock spokesman says: “We continue to be active and compete in the market. Today’s market conditions do not impact on our existing funds.”


Miton hits the ejector button

MitonOptimal says it has concerns about blackbox investment strategies and sold out of the JP Morgan Highbridge statistical market-neutral fund just before it fell by almost 7 per cent in less than a week.

Burns-Anderson launches adviser profit calculator

Burns-Anderson has launched an adviser profit calculator, designed to determine advisers’ contribution to firm’s income and overall profitability.B-A says the idea was prompted by one of its members, looking for a tool to reckon the salary and bonuses he should offer a prospective recruit. Head of marketing Adrian Lewis says first-rate advisers deserve premium rates […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm