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Kensington issues £465m securitisation

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  • 12/07/2019
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Kensington issues £465m securitisation
Specialist mortgage lender Kensington priced its latest securitisation transaction yesterday at £465m, bringing its total issuance to over £8.7bn since ownership changes in 2015.

 

 

The deal is the eighth from the lender’s Finsbury Square shelf, which the mortgage provider uses to securitise its owner occupied and buy-to-let loan originations.

The £465m deal saw significant demand from investors, said Kensington, leading to the transaction being upsized from an initial £325m.

All tranches were also oversubscribed after the upsize, said Kensington.

 

The wider market

 

After a slow start to the year on the back of Brexit uncertainty, the RMBS market has been very active in recent weeks, with seven transactions publicly placed with investors since the beginning of May, said Kensington.

Despite the increased supply of bonds in the primary market, Kensington’s transaction was able to attract a wide range of investors and achieved excellent pricing terms, it added.

Alex Maddox, capital markets and digital director, said: “The last few weeks have been very busy in the market with a number of lenders who haven’t previously used the securitisation route for funding bringing deals to the market. The continued strong investor demand for Kensington’s transactions is evidence of the market’s recognition of the high-quality collateral we originate.”

In June, the lender launched its Hero Mortgage for public sector workers including police, firefighters, paramedics, nurses and clinicians, the armed forces and teachers.

The home loan offers up to 5 x loan to income and a 55% debt to income ratio.

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