Optimum Credit closes third residential mortgage backed securitisation

Robyn Ashman

October 2, 2019

household finances during pandemic

Optimum Credit Limited has closed its third Residential Mortgage Backed Securities (RMBS) securitisation backed by 2nd Lien Residential Mortgage Loans.

The £274.8m deal, called Castell 2019-1, followed the successful placement of Optimum’s Castell 2017-1 and Castell 2018-1. Castell 2019-1 was structured using Sterling Overnight Index Average (SONIA) in preparation for the end of LIBOR-based transactions in 2021.

It was announced on Monday 2 September, with final pricing on 12 September. Strong demand saw oversubscription across all the tranches, senior 1.6 times and mezzanine greater than 2 times oversubscribed with pricing set tighter than initial guidance.

Barnaby Brand, finance director of Optimum Credit, said: “There was strong investor demand for this securitisation, which was over-subscribed in a competitive market against a very uncertain political backdrop.

“This is testament to the quality assets we are able to generate at Optimum Credit. Castell 2019-1 is our third securitisation and continues to support our diverse and sustainable funding strategy.”

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