View more on these topics

A&L £225m securitisation is set at 40bps over Libor

Price talk is emerging on the first UK residential mortgage-backed securitisation to be marketed publicly since the credit crunch took hold in August.

The AAA tranche of the Alliance & Leicester £225m securitisation, made up of buy to let and self-certification loans is being priced at around 40 basis points over Libor.

In normal market conditions, an AAA tranche on a prime RMBS would be around 10bps over Libor, with sub-prime around 17-25bps over.

But Homefunding chief executive Tony Ward says the A&L price is good news as it shows that the bond markets are no longer closed. He says: “I think it is a good sign, provided the deal gets away. At the moment everything is experimental so I would not look at this as where pricing has properly got to.”

Money Partners director of communications Bob Sturges adds: “As a lender, you would not want to fund at that level for a very long time but it is likely to represent a very good return for investors.”

The deal is due for settlement on November 14.


The grim repo

Will Henley reports on the implications of a predicted big rise in house repossessions and mortgage arrears.

BDS Mortgage Group launches new sourcing system

The BDS Mortgage Group has launched a new free sourcing system to all brokers and satellite packagers.The ‘Gravity’ system was initially piloted with ten firms, which were then increased to 26 after positive feedback from the recent BDS Rollercoaster and Roundtable event in which over 75 per cent of attendees expressed an immediate interest in […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm