View more on these topics

Investec to publicly place £204m in RMBS

Kensington Mortgages’ parent company Investec is looking to publicly place all of its £204m residential mortgage-backed securitisation, Money Marketing understands.

RMBS activity has increased significantly over the past year but experts say issuers are retaining large chunks of the transactions, which means less capital is created for mortgage funding.

Before the 2008 crisis, originators would usually publicly place the entire transaction with end-investors, excluding the lowest-quality tranche, which would be retained by the issuer.

The Investec deal, Gemgarto 2011-1, is backed by a pool of prime residential mortgages originated by Kensington since its return to lending in November 2009.

The deal, announced this month and which has not yet been priced, contains a full capital structure, meaning it is not solely made up of AAA notes.

Investec declined to comment.

Standard & Poor’s analytical manager of new RMBS issuance in EMEA Farid Shavaksha says: “A full capital structure offered from the originator that started the whole non-conforming market in the UK is another small step towards a reopening of the wholesale markets.”

Home Funding chief executive Tony Ward says: “It is good to see investors willing to invest in subordinated notes in UK house price risk because it is a vote of confidence for the RMBS sector.”



Germany slams UK for shunning EU ‘Robin Hood’ tax

Germany’s political leaders have attacked the UK’s opposition to introducing a financial transaction tax within the European Union. According to the Guardian, ahead of a meeting between German chancellor Angela Merkel and Prime Minister David Cameron in Berlin yesterday, Merkel said she would not let the UK “get away” with not supporting the tax. The […]

The Day of (B)reckoning

A period of exceptional uncertainty started last Friday for the UK, including a fierce leadership battle in a deeply divided Conservative party, the timing of the trigger of the EU’s Article 50, as well as a potential referendum in Scotland, and Northern Ireland. Click here to read the full article


News and expert analysis straight to your inbox

Sign up


    Leave a comment