(April 3 – 14:10 ET) – Laurentian Bank of Canada has just completed a securitization of over 150 million dollars of CMHC insured residential mortgages.
NHA Secured Trust, a wholly owned subsidiary of the Bank, issued a series of bonds in three tranches : of $65.0M (6.59%, due April 15, 2003), of $45.0M (6.63%, due April 15, 2004) and of $40.325M (6.65%, due January 15, 2005) that were sold through a syndicate of underwriters led by BLC Securities and co-managed by BMO Nesbitt Burns Inc., CIBC World Markets Inc. and National Bank Financial Inc. This issue received a rating of AAA from Dominion Bond Rating Service.
The Bank says it has has securitized over 2.7 billion dollars of mortgages since Jan. 1997. These transactions reduce the value of mortgages on the Bank’s balance sheet. As these mortgages will still be managed by the Bank, off-balance sheet assets under administration increase for a corresponding amount.
-IE Staff