Santander set to launch £3bn securitisation

Santander are set to launch a new residential mortgage-backed securitisation, while Barclays is set to launch a £750m covered bond.

Standard & Poor’s estimates Santander’s issue, called Holmes Master Trust 2012-1, will be backed by loans worth up to £2.97bn, although the bank says this is yet to be finalised and will depend on investor interest.

The Spain-based bank says transaction will be used to fund the bank in its lending activities.

It will be the fifth transaction from the Holmes Master Trust since the bank restructured the trust in October 2010, the last issue being a £3.75bn RMBS launched in May, and the twentieth in total. Before October 2010, Holmes had two funding vehicles, Holmes Funding and Holmes Funding 2.

Santander will manage the transaction, along with Barclays Capital, Deutsche Bank and JP Morgan.

Barclays’ covered bond is backed by prime residential mortgages and has a maturity of three years. It is priced at three-month Libor plus 1.55 per cent and is rated as AAA.

Chadney Bulgin mortgage partner Jonathan Clark says: “It is a good sign that banks feel investors have confidence in investing in these bonds and it will be good for both banks and the mortgage market as it will give them more money to fund mortgage lending.”