Bradford & Bingley has privately placed a residential mortgage-backed securitisation of UK non-conforming loans from its subsidiary Mortgage Express.
It is understood that the initial pool consists of about 78 per cent buy-to-let loans and 22 per cent self-certified mortgages although Bradford & Bingley would not comment on the details of the deal.
The privately placed securitisation is the fifth issue out of the Aire Valley Master Trust.
Black and White Group chief executive officer Thomas Reeh says that Bradford & Bingley is clearly following a strategy by choosing to privately place its RMBS rather than offer it publicly,
He says: “I know there are private hedge funds out there who do see some opportunity in buying these deals. They can get better prices for them than they would have got a few months ago.”
A Bradford & Bingley spokeswoman says the Mortgage Express deal was part of usual business and the firm is likely to do more in the near future. She says whether the lender will look to start offering publicly placed RMBS will depend on the market at the time.