Kensington completes £650m securitisation

Jessica Nangle

January 30, 2020

Kensington Mortgages has priced its latest securitisation transaction at £650m, bringing its total RMBS issuance to over £10bn since the group was formed under its current ownership in 2015. 

The deal marks the tenth from the lender’s Finsbury’s Square shelf, which includes recent owner-occupied and buy to-let loans.

The deal saw exceedingly high demand from investors, leading to the transaction being upsized from an initial size of £490m.

All tranches were oversubscribed multiple times, even after the upsize.

Kensington recently announced the launch of a new web-based investor portal where current and future bond investors are able to download any documents and loan level data from Kensington’s existing RMBS deals.

A data dashboard is also available which has been developed by Kensington Intelligence.

Kensington Intelligence is the new data and analytics platform of Kensington Mortgages, which manages £11bn in mortgage assets.

The data dashboard allows investors to utilise Kensington Intelligence’s data visualisation tools in order to analyse mortgages that secure the Kensington RMBS programmes.

The investor portal is the first time Kensington Intelligence’s tools have become accessible to third parties.

Alex Maddox, capital markets and digital director at Kensington Mortgages, said: “We’ve started the new year in a great position.

“With the successful pricing of our first securitisation of 2020 at over 10 bps lower rate than Precise’s recent deal, Kensington continues to be the most active issuer in the UK RMBS market, exceeding the £10bn mark of RMBS issued.

“In 2019, Kensington Mortgages completed a record volume of originations at £1.4bn.

“The confidence demonstrated by investors in our business will underpin our continuous efforts to generate more funding and meet the growing demand of our mortgage customers.

“As part of our commitment to this market, we’re pleased to announce the launch of our investor portal, and it reflects our first step to offering Kensington Intelligence’s platform to third parties.

“Both announcements reinforce the strength of our position and we are confident our portal will be a useful tool for our investor base going forward.”

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