Northern Rock launches £370m securitisation
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Northern Rock has returned to the securitisation market for the first time since it was nationalised.
The size of the securitisation is expected to be £370m, approximately 2% of its £18.5bn balance sheet.
But Northern Rock says it will remain substantially funded by retail savings.
The deal will be a standalone transaction, secured on what the bank says is high quality UK mortgage assets, selected from its total loan book of £12.2bn.
The average indexed LTV of the bank’s mortgage book was 59% at 31 December 2010.
Following the split of the former Northern Rock business at the start of 2010, all historical securitisation funding is held by Northern Rock Asset Management.
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