Granite (Northern Rock vehicle)
Encyclopedia
Granite is a securitisation vehicle
created by the British bank Northern Rock
, based in Guernsey
.
The purpose of Granite is to parcel up the mortgages provided by the bank and sell the value to investors. Granite has a value of around £45 billion.
Northern Rock, advised by Credit Suisse
, have decided to let Granite go into run-off, meaning that Northern Rock the bank will no longer supply it with fresh mortgages and bondholders will be repaid as old mortgages expire.
In plans made public on 8 December 2009 certain wholesale deposits are to be held by the renamed assets company, Northern Rock (Asset Management)
plc, on behalf of Granite.
Securitization
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation , to...
created by the British bank Northern Rock
Northern Rock
Northern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
, based in Guernsey
Guernsey
Guernsey, officially the Bailiwick of Guernsey is a British Crown dependency in the English Channel off the coast of Normandy.The Bailiwick, as a governing entity, embraces not only all 10 parishes on the Island of Guernsey, but also the islands of Herm, Jethou, Burhou, and Lihou and their islet...
.
The purpose of Granite is to parcel up the mortgages provided by the bank and sell the value to investors. Granite has a value of around £45 billion.
Northern Rock, advised by Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
, have decided to let Granite go into run-off, meaning that Northern Rock the bank will no longer supply it with fresh mortgages and bondholders will be repaid as old mortgages expire.
In plans made public on 8 December 2009 certain wholesale deposits are to be held by the renamed assets company, Northern Rock (Asset Management)
Northern Rock (Asset Management)
Northern Rock plc is a British asset holding and management company which was split away from the Northern Rock bank in 2010. It is currently under public ownership, due to the bank's nationalisation in 2008...
plc, on behalf of Granite.
External links
- Mortgage Securitisation deals at Northern Rock