B&B's £2.9bn securitisation deal
Bradford & Bingley, Britain's largest buy-to-let mortgage lender, has securitised £2.9bn of residential mortgages in a deal that could help it raise funding to extend new business.
The first transaction this year under the bank's Aire Valley master trust programme, completed on Wednesday, included £2.5bn of triple-A-rated notes and £400m of subordinated notes, IGM Structured Finance Watch reported.
The deal may help the troubled bank get much-needed liquidity at a time that raising wholesale funding in the money markets is not easy.
It also comes at a time that B&B is bolstering its balance sheet by raising £400m of capital in a shareholder rights issue.
The new Aire securities are available for the Bank of England special liquidity scheme "as well as other undrawn facilities", a spokesman for the bank said.
The triple-A tranches are denominated in both pounds and euros to give the bank flexibility, he said. The bank declined to comment on whether it planned to do more such deals.
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Last Updated:
25 July 2008 8:37 AM
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Source:
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Location:
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