Kensington Mortgages prices £548m residential mortgage securitisation

The deal, Gemgarto 2023-1, is the first securitisation for two years and contains owner-occupier, high loan to value (LTV) loans originated by Kensington and aims to de-risk a portfolio of mortgages from Barclays’ balance sheet rather than to raise funding for the business.

Barclays will retain the senior notes of the securitisation and Kensington Mortgage said that the reception from the markets was “strong from the beginning of the process”.

Alex Maddox (pictured), capital markets and digital director, Kensington Mortgages, said: “This deal is a successful first public trade for Kensington under Barclays’ ownership; we have managed to attract significant and granular orderbooks, with depth and variety of the investors involved.

“This demonstrates a continued level of confidence from investors in the Kensington platform. The strong position we have built over the years in the UK RMBS market has helped us print an excellent transaction, pushing spreads across mezzanine notes to their tightest levels since April 2022.”