Broadstone to acquire Rockstead and strengthen its Banking & Credit Advisory business
Rockstead adds material scale to Broadstone’s capabilities in the strategically important banking and lending market.
Acquisition brings a blue-chip client base of local and global Tier 1 banks, private equity firms, specialist lenders and a recognised leading industry team.
Bridging growth needs better risk management
Over the past six months, there has been a definite and deliberate shift in funders’ thinking when it comes to risk. For much of the past decade, institutional and bank funding has flowed into specialist lenders under a broadly stable set of assumptions. Liquidity has been abundant, rates low and credit performance appeared resilient even through periods of macro uncertainty. Funders prioritised growth, origination capability and asset yield.
Global Volatility – the impact on UK lenders and asset holders
The most significant current risk to UK lenders is geopolitical and macroeconomic instability. For CROs, geopolitical risk is no longer a background issue — it requires input into credit models, capital planning and risk appetite decisioning. As trade barriers rise, supply chains fragment, and political uncertainty reshapes global outlooks, the direct impact on the UK economy – and mortgage portfolios – is significant.
Why the collapse of US auto finance lenders matters for UK mortgages By John Barbour, chief executive, Rockstead
At first glance, the failure of a US car finance provider might appear to have little relevance to UK mortgages. Yet a number of lending frauds in the US private credit market have triggered a global response from funders, one that is beginning to feed through to the UK.
Servicers Back Under the Microscope
In today’s climate, the oversight of third-party servicers is not just an operational concern—it’s a strategic imperative for risk management. With regulatory scrutiny intensifying and customer outcomes under the spotlight, lenders must ensure that delegated outsourced functions are completed to appropriate standards that protect both the borrower and the institution.
Private Credit – New Risks
The global financial crash of 2008 revealed the dangers of financial contagion. What began as a collapse in the United States subprime mortgage market rapidly evolved into a worldwide banking catastrophe.
The retirement of the Building Society Sourcebook
As policymakers continue to shift their focus from consumer protection to growth, building societies are on the brink of a new competitive landscape, due to the imminent retirement of the Building Society Sourcebook. This change will be more profound than the post-1986 Act shakeup, fundamentally altering the risk environment.
Funding volatility is reshaping lending
UK lender funding models are going through significant structural change, as investor and regulatory scrutiny on loan book performance increases. The emerging position is that lenders who can demonstrate portfolio resilience and regulatory alignment are accessing new facilities at competitive rates but those who can’t are already losing ground. The future is clear; lenders who invest in robust independent oversight are the ones securing funds at competitive rates which, in turn, is driving their competitive growth.
Lines of defence back in the spotlight
Regulator fines have featured regularly in our think-pieces ever since our formation in 2008. Over the years the amounts in various sanctions have been eye-watering. We have also spoken over the years about the business cost of non-compliance; not just the fines but also the wider cost of remediation and reputational damage. Despite this, fines have become a regular headline in our industry, with some stating “fines are just a cost of doing business”. We cannot subscribe to that view.
Consolidation is back on the agenda
Last month 10 of the Rockstead team, along with approximately 5,000 delegates, attended Global ABS in Barcelona. For over a decade Rockstead has supported this event and without doubt, this was the biggest ABS event so far. There was a significant buzz of energy and enthusiasm, despite the backdrop of increasing geopolitical volatility which continues today.
