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Clydesdale and Yorkshire set up second securitisation

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, which has not yet been priced, represents the third issuance out of the Lanark master trust and has been given a provisional AAA rating by 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 dollar and euro- denominated tranches.

Last month, Clydesdale and Yorkshire launched an £829m securitisation backed by a pool of buy-to-let mortgages.

Industry consultant Jonathan Cornell says: “Investors are keen to buy mortgage-backed securities. The situation in Europe means that banks are finding it hard to raise funding which might be another reason that Clydesdale and Yorkshire are looking to launch another securitisation so quickly.”



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