Member Article
Northern Rock returns to securitisation market
Northern Rock has reportedly launched its first public securitisation issue since it was nationalised.
The size of the transaction is expected to be £370m, 2% of its £18.6bn balance sheet at 31 December 2010.
The company said it will remain substantially funded by retail savings.
It is the latest in a line of lenders to securitise following recent securitisation announcements by Skipton, Santander and Lloyds.
Simon Hall, external communications manager at Northern Rock, said: “The restructured plc was set up to be entirely funded by retail savings. Some 99 per cent of our funding came from retail savers.
“Securitisation offers more diversification into the funding basis - it diversifies the source and the terms of funding. The term is often longer with securitisation as the average life of this is around two years.”
This was posted in Bdaily's Members' News section by Ruth Mitchell .
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