Kensington has priced the largest placement of sterling asset backed securities (ABS) this year with a £1.5 billion deal known as Trinity Square 2015-1.
Initially targeted as a £1.0 billion transaction, Trinity Square 2015-1 received a response from 25 unique investors and was over-subscribed even after upsizing the deal to £1.5 billion.
The securitisation, which is backed by seasoned loans acquired from GE Money in August 2015, has a weighted average LTV of 63%. Class A Notes were priced at a Discounted Margin of LIBOR+140bps.
Alex Maddox, business origination and development director at Kensington, said: “The success of Trinity Square 2015-1 and our recent Gemgarto 2015-2 transaction demonstrates the strong level of investor appetite for quality residential mortgage assets, whether they are seasoned or recent originations.
“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.
“This deal will make us the biggest issuer of UK residential mortgage backed securities (RMBS) this year to date and we believe that this appetite will continue as we go into 2016, thereby providing significant further funding for the business.”