Kensington lauches securitisation
The transaction was fully subscribed and achieved significant price tightening throughout the capital structure from the last trade in the RMS programme, RMS18. Residential Mortgage Securities 19 plc (RMS 19) priced on 13 October 2004.
• The £700 million transaction is the third Kensington securitisation in 2004. Pricing continued the improving trend seen with RMS 17 in February and RMS 18 in July, with all tranches having tightened from those levels.
• Kensington has now securitised approximately £7.6 billion of residential mortgages since the start of its programme in 1996. RMS 19 is the twenty first transaction from Kensington.
• RMS 19 reflects the strong momentum in new business and provides £700 million of term financing for the mortgage portfolio.
Mark Wilten, Group Treasurer said, “We are delighted to announce our latest securitisation transaction, RMS 19. Market demand for Kensington's securitisations has continued to strengthen. The RMS 19 pricing has resulted in a significant reduction in our cost of funds. Bear Steams and Barclays Capital, joint lead managers, continued to broaden and deepen the global investor base and have achieved an excellent result.”