Description
A bank loan was securitised along with a tranche of other loans and sold to the Claimant, who in turn issued floating rate notes to investors. The issue was whether the Claimant could bring a claim against the valuation company instructed by the bank in making the original loan for an alleged negligent over-valuation. While economically the investors in the notes had suffered the loss, it did not follow that the Claimant had not suffered loss in respect of which it could claim. The Claimant was able to show that it was contractually obliged to distribute any sums received to noteholders and that was consistent with the contractual structure.
