Northern Rock is planning to sell bonds backed by residential mortgages, The Wall Street Journal reports. The size of the bond sale is expected to be about 2% of the bank’s balance sheet on Dec. 31, 2010, or around £300-400 million. The mortgage-backed securities (MBS) will be denominated in sterling and euros. The bonds will be issued by Gosforth Funding 2011-1. The bank has appointed Deutsche Bank, JP Morgan Chase and Royal Bank of Scotland as joint lead managers.
Click here for the story from The Wall Street Journal.
Click here for the additional coverage from Reuters.