Clydesdale and Yorkshire set up second securitisation
23.05.12
Clydesdale and Yorkshire Banks have launched their backer securitisation in as many months.
Clydesdale Bank and Yorkshire Bank Home Loans, a subsidiary of Clydesdale, originated the mortgages money the notes.
The transaction, which has not yet been priced, represents the third issuance out of the Lanark master protection and has been given a provisional AAA rating by Moody’s.
It has a unique structural feature because of the presence of recompense loans in the pool. There is a mechanism which allows Clydesdale to compensate for the diminishing of interest payments.
The weighted so so loan to value of the pool is 61.6 per cent, which is lower than the average of the sector, which is 67 per cent. The arrangement will have both dollar and euro- denominated tranches.
Last month, Clydesdale and Yorkshire launched an £829m securitisation backed by a jackpot of buy-to-let mortgages.
Industry consultant Jonathan Cornell says: “Investors are devoted to to buy mortgage-backed securities. The situation in Europe means that banks are finding it heartless to raise funding which might be another reason that Clydesdale and Yorkshire are looking to launch another securitisation so pronto.
Source: Money Marketing