RBS 2011 Annual Report Download - page 123

RBS Group 2011 121
The table below shows the currency breakdown of public and private long-term debt securities issued.
GBP EUR USD AUD Other Total
2011 £m £m £m £m £m £m
Public
-MTNs — 1,808 2,181 1,096 — 5,085
- covered bonds — 5,001 — — — 5,001
- securitisations 478 1,478 2,850 — — 4,806
Private 2,872 3,856 3,183 302 2,701 12,914
3,350 12,143 8,214 1,398 2,701 27,806
%of total 12 44 29 5 10 100
2010
Public
- MTNs 1,260 3,969 5,131 1,236 1,291 12,887
- covered bonds —3,999 — — — 3,999
- securitisations 663 1,629 1,750 — — 4,042
Private 2,184 10,041 2,879 174 2,172 17,450
4,107 19,638 9,760 1,410 3,463 38,378
%of total 11 51 25 4 9 100
2009
Public
- MTNs 7,267 4,795 10,940 3,173 1,874 28,049
Private 4,932 9,773 9,668 2,738 3,243 30,354
12,199 14,568 20,608 5,911 5,117 58,403
%of total 21 25 35 10 9 100
Key points
xIn line with the Group’s plan to diversify its funding mix, issuances
were spread across G10 currencies and maturity bands, including
£5.7 billion of public issuance with an original maturity of greater
than 10 years.
xThe Group has issued approximately £2.8 billion since year end,
including a £1 billion public covered bond issuance and a US$1.2
billion securitisation.
Secured funding
The Group has access to secured funding markets through own-asset
securitisation and covered bond funding programmes to complement
existing wholesale funding programmes and access to the repo markets.
The Group monitors and manages encumbrance levels related to these
secured funding programmes. This includes the potential encumbrance of
Group assets that could be used in own-asset securitisations and/or
covered bonds that could be used as contingent liquidity.
For information on the Group’s own-asset securitisations, covered bond
programme and securities repurchase agreements, refer to Note 30 on
the consolidated accounts on pages 396 and 397.
Liquidity management
Liquidity risk management requires ongoing assessment and calibration
of: how the various sources of the Group’s liquidity risk interact with each
other; market dynamics; and regulatory developments to determine the
overall size of the Group’s liquid asset buffer. In addition to the size
determination, the composition of the buffer is also important. The
composition is reviewed on a continuous basis in order to ensure that the
Group holds an appropriate portfolio of high quality assets that can
provide a cushion against market disruption and dislocation, even in the
most extreme stress circumstances.