Mortgage News
Kensington securitisation will be “positively received”
Investec has launched Gemgarto 2011-1, a £204m securitisation deal backed by a pool of prime residential mortgages.
The deal is expected to be well-received, said a fund house.
All the mortgages within the deal were originated by Kensington since its return to lending in November 2009 and the notes are expected to be rated AAA by Standard & Poors, Fitch and DBRS.
Keith Street, head of Kensington, said: “Initial feedback from ratings agencies and investors has been hugely positive and this is testament to the high quality of the prime assets that have been originated by Kensington.
“I am looking forward to working with my colleagues at Investec on more deals of this nature in the future as we continue to build responsible and sustainable recovery in the UK mortgage market.”
Another Kensington spokesman, said: “We have refocused towards high quality prime assets and we will continue to steer a steady course.”
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Rob Ford, portfolio manager with TwentyFour Asset Management, said he expected the launch to be positively received, and very different to Kensington’s last 50/50 split adverse credit/non-standard securitisation in late October 2010.
“The yield will likely be lower on these bonds than the old style deal, but there will be an appetite from investors. Barclays announced and Lloyds launched prime securitisations last week, but this will produce a higher yield because the portfolio will have a different maturity structure and the loans are prime but not high-street bank originated,” he said.