Granite (Northern Rock vehicle)

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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. In 2008 Granite had a value of around £45 billion.[1]

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.[2]

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.[3]

References[edit]

  1. ^ Aldrick, Philip; Griffiths, Katherine (2008-02-20). "The state of Northern Rock: anything but usual". London: The Daily Telegraph. Retrieved 2008-02-22. 
  2. ^ "Northern Rock calls it a day on Granite vehicle". The Financial Times. 2008-11-21. Retrieved 2008-11-22. 
  3. ^ "Government guarantee arrangements for Northern Rock plc" (PDF). HM Treasury. 2009-12-08. Retrieved 2009-12-09. 

External links[edit]