Leading social housing lender, Dexia, has said it is offsetting margin squeeze in stock transfer and mainstream long-term funding by focusing on other growth areas.
This includes long-term hedging strategies and other opportunities such as the private finance initiative.

Dexia deputy general manager Ian Clark said that the returns currently available to lenders were too low to persuade the bank to bid for the majority of deals in the transfer market (HT 12 September, page 16).

He added that Dexia will exploit opportunities with existing clients and offer long-term derivative lines to the wider marketplace to take advantage of low interest rates.

Dexia is also financing housing associations in areas such as key-worker housing and care homes.

Source

Housing Today