Nationwide launches £3.5bn securitisation deal
Share
Nationwide has launched a £3.5bn issue of residential mortgage-backed securities in what is the second significant securitisation deal since the start of the financial crisis.
The UK’s biggest building society launched the issue on October 23 via a securitisation vehicle called Silverstone, and aims to close the issue on November 3.
The deal is backed by prime mortgage assets with an average LTV of approximately 65%.
It follows the widely heralded £4bn mortgage-backed bond issue from Lloyds Banking Group one month ago.
When news of the Lloyds Group deal first emerged it was lauded by some as a sign that the securitisation markets, which had been frozen since August 2008, had finally reopened.
Prior to the Lloyds deal the last time a similar securitisation deal had taken place was in August last year with a £400m issuance carried out by Alliance & Leicester.
But other commentators were more cautious, saying that although the issuance from Lloyds Group was encouraging it did not mark a revival of the RMBS markets.
