... And the Irish Times says that permanent tsb got a discount on the non-tracker book?
Interesting.
The variable rate loans are most likely newer loans, with higher LTVs, so there's potentially a higher risk profile to that portfolio, and hence, it sold at a deeper discount to face value.
With regards to why the PTSB didn't buy the tracker portfolio, my guess is twofold:
1. It would drag down the PTSB's NIM
2. The PTSB don't have any money, their deal is being financed by shares - which are going to NatWest, in return for the UB and Lombard clients. They did well to get NatWest to accept shares in the PTSB, but I'm sure there was a limit to how much of the PTSB NatWest wanted to end up owning (keeping in mind that they want out of Ireland, but could have bought the Permo over the years, if they ever actually wanted it).
In my view, our Finance Minister has done a really good job behind the scenes, with regards to helping manage NatWest's exit from Ireland. There's no doubt in my mind, that he's the one who has put the deals togeather with both AIB, and PTSB, having engaged with both NatWest, and the British Chancellor (as majority shareholder in NatWest), from an early stage.