Northern Rock Bonds That Lost Over 90% in Value to Repay in Full
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Investors in mortgage bonds from failed U.K. lender Northern Rock Plc will be paid back in full on debt that once traded at less than 10 percent of its sale price.
About 7 billion pounds ($10 billion) worth of residential mortgage-backed securities will be redeemed from Thursday, with the bulk of the notes to be paid back on Dec. 21, according to data compiled by Bloomberg. The securitizations, which are known as Granite, are being unwound after Cerberus Capital Management bought the underlying debt from the U.K. government.