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Kensington issues pricing for third securitisation deal

  • 23/11/2015
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Kensington issues pricing for third securitisation deal
Kensington has issued a securitisation deal backed by £280m of its mortgages marking the third transaction of its kind this year.

Mortgages included in the transaction have been on Kensington’s books for nine months and have an average loan-to-value of 74%. The senior tranche, made up of mortgages with the best performance, has been priced at three-month LIBOR plus 145 basis points and labelled as Prime Collateralised Securities.

Kensington said the securitisation, known as Gemgarto 2015-2, had already attracted strong demand. The Class A notes have been three times oversubscribed while interest from 14 different investors has been received across all tranches.

This latest deal will take the amount raised through securitisation transactions to almost £1.29bn. In July this year the lender securitised £508m of new assets through Gemgarto 2015-1 and in March it completed a £497m securitisation of more seasoned assets.

Alex Maddox, business origination and development director at Kensington, said: “This is another strong performance from a Kensington securitisation. We have achieved pricing at the tighter end of the guidance and better than recent competitor issuances, which confirms investor confidence in the quality of the assets we are generating. We have raised well over a billion pounds of funding since the change of ownership earlier this year and this, combined with the capital committed by our owners, will provide a strong foundation for our growth plans.”

Kensington has plans to extend its lending through a new brand, New Street Mortgages, which is expected to launch towards the end of this year or the beginning of 2016. The ex-managing director for the intermediary channel, retail lending at Barclays, David Finlay, is involved with the venture but his job title has yet to be confirmed.

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