Kensington Mortgages completes £650m securitisation

The deal marks the tenth from the lender’s Finsbury Square series, which includes recent owner-occupied and buy-to-let loans. The transaction was priced at SONIA +80 base points for the senior tranche, achieving a total cost of funding 26 base points cheaper than the last Finsbury Square transaction in 2019.  

The lender said the deal saw high demand from investors, leading to the transaction being increased from an initial size of £490m and all tranches were oversubscribed.  

This is the first Kensington transaction to be issued in both RegS and 144a format, which allowed the group to attract new US fund investors. 

Investor portal launch 

Earlier in the week, Kensington announced the launch of a web-based investor portal where current and future bond investors are able to download any documents and loan level data from the lender’s existing RMBS deals.  

A data dashboard is also available, which is a tool that has been developed by Kensington Intelligence, the new data and analytics platform of Kensington Mortgages that manages £11bn in mortgage assets.  

The dashboard will allow investors to use Kensington Intelligence’s data tools to create tables and view historical performance trends for single or combined deals, so they can analyse mortgages that secure the Kensington RMBS program.

The investor portal launch is the first time Kensington Intelligence’s tools have become accessible to third parties, as part of an aim to commercialise the platform. 

Alex Maddox (pictured), capital markets and digital director at Kensington Mortgages, said: “We’ve started the new year in a great position. With the successful pricing of our first securitisation of 2020 at over 10 bps lower rate than Precise’s recent deal, Kensington continues to be the most active issuer in the UK RMBS market, exceeding the £10bn mark of RMBS issued.  

“As part of our commitment to this market, we’re pleased to announce the launch of our investor portal, and it reflects our first step to offering Kensington Intelligence’s platform to third parties.”