£38m write-downs for B&B

Bradford & Bingley has revealed it took write-downs of £38m in Q1 2008.

The loss was recorded in the mortgage lender’s structured finance portfolio and published in an interim statement yesterday.

This portfolio includes principal-protected notes, structured investment vehicles, collateralised debt obligations and collateralised loan obligations.

B&Bs Interim Statement says: “We have disposed of £111m of PPNs at book value. In the first quarter, losses on these assets that we believe to be permanent increased by a further £38m.

It adds: “Following movement in the fair value of derivatives, the net exposure to synthetic CDOs is £94m and synthetic CLOs is £58m.”

The mortgage lender, which recently lowered LTV levels to enhance business, has previously denied plans for a rights issue.