Lloyds Banking Group is to launch its first securitisation backed by prime mortgages from Cheltenham & Gloucester and Lloyds TSB since May 2007.
The deal is due to be launched and priced at the end of this week, though Fitch Ratings has estimated the transaction to be worth £3.4bn.
Previous securitisations from Lloyds group have been issued via its Permanent programme, which comprises HBOS-originated mortgages. This latest issuance via the Arkle master trust is backed by mortgages from Lloyds TSB and C&G..
A spokeswoman for Lloyds group says: “There had been speculation that we wouldn’t run both the Permanent and Arkle programmes, so it’s an interesting development for the market.”