UPDATE 1-Metro Bank buys $731 mln mortgage portfolio from Cerberus

From Reuters - February 23, 2018

LONDON (Reuters) - Britains Metro Bank (MTRO.L) will acquire a 523 million pound ($731 million) mortgage portfolio from two companies controlled by U.S. private equity firm Cerberus, the bank said on Friday.

The portfolio was purchased from buy-to-let mortgage provider Capital Home Loans, previously owned by Irelands Permanent TSB which sold the portfolio to Cerberus, and CERH RSMC Sub B.V., also owned by Cerberus.

The investment firm has been among the most active buyers of bad debts in Europe in the years following the 2008 financial crisis, snapping up cheap loans from Ireland to Italy and selling them on as market conditions improved.

Metro Bank said the portfolio was secured mostly on properties in London and the south east of England and had a similar credit profile to its current mortgage book.

This high-quality loan portfolio further strengthens our high growth, organic business model and complements our conservative risk appetite, CEO Craig Donaldson said in a statement.


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