PropertyDec 15 2015

Kensington sets price for £1.5bn placement

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Kensington sets price for £1.5bn placement

Kensington has issued the price for what it claims to be the largest placement of sterling asset-backed securities in 2015.

Initially targeted as a £1bn transaction, the deal - known as Trinity Square 2015-1 - has received an “overwhelming response” from 25 unique investors and was over-subscribed even after being upsized to £1.5bn.

The securitisation, which is backed by seasoned loans acquired from GE Money in August, has a weighted average loan-to-value of 63 per cent.

Class A Notes were priced at a discounted margin of LIBOR+140 basis points.

Alex Maddox, business origination and development director at Kensington, said that there is a strong level of investor appetite for residential mortgage assets.

“December is traditionally a quiet time in the market and it is rare to price a big deal at this time of year, but there was very little competing supply, so we were confident that it would be well received,” he said.

“We believe that this appetite will continue as we go into 2016, thereby providing significant further funding for the business.”