HFC Bank, the U.K. arm of Household Finance, will likely discontinue its securitization program, according to a firm official. The main driver to stop securitizing its receivables is because HFC Bank can now get financing through its new parent company HSBC Bank. The official says HFC Bank can obtain cheaper financing through HSBC than it could through the securitization market. Household Finance will continue to securitize its U.S. assets, says this official.
Last year, HFC Bank completed a £619 million deal called Affinity 001, which securitized credit card receivables. HFC Bank's securitization program was relatively small compared to MBNA Bank Europe and Capital One Bank (Europe).
