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Article: Northern Rock Fiasco Pressures Granite.(Northern Rock PLC)
- Article from:
- Asset Securitization Report
- Article date:
- January 21, 2008
- Author:
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The battle for Northern Rock still isn't over, and a quick-fix solution is now nothing but a dream.
Private bidders are struggling to find funding for a takeover bid while U.K. Prime Minister Gordon Brown hinted that the embattled mortgage lender might have to be nationalized to save Britain's banking reputation. In the midst of all this, Granite, the bank's securitization platform, continues to perform, but not without trouble.
The lack of resolution on Northern Rock is a concern for Granite bond holders, Societe Generale analysts said, primarily because the spreads are, on average, 30 basis points wider at the triple-A level when compared with other ...