Clydesdale and Yorkshire Banks have launched their second securitisation in as many months.
Clydesdale Bank and Yorkshire Bank Home Loans, a subsidiary of Clydesdale, originated the mortgages backing the notes.
The transaction represents the third issuance out of the Lanark master trust and has been given a provisional AAA rating by rating agency Moody’s.
It has a unique structural feature because of the presence of offset loans in the pool. There is a mechanism which allows Clydesdale to compensate for the diminishing of interest payments.
The weighted average 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 transaction will have both US$ and € denominated tranches.
Last month, Clydesdale and Yorkshire launched an £829m securitisation backed by a pool of buy-to-let mortgage loans.