Kensington parent to launch £250m securitisation
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Investec, the parent company of Kensington, is about to launch a £250m securitisation of “non-standard” mortgages, including some sub-prime loans, reports the Financial Times.
The deal should be launched over the coming three to six weeks and if successful, would mark the first time that sub-prime mortgages have been securitised in Europe since the financial crisis.
The FT reports that people familiar with Investec’s plans said they had lined up a selection of investors with an appetite for the issue and expects to have to pay a coupon of between 2 and 3 percentage points over Libor.
The FT says the portfolio of loans in the deal comprises standard prime loans, non-standard mortgages, principally self-certified mortgages, and a portion of sub-prime.
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Readers' comments (1)
Anonymous | 20 Sep 2010 8:01 pm
It’s a breath of fresh air! Let’s hope it’s a success and this will spark a revival into "SENSIBLE" subprime / specialist lending again. There are 1000's of clients with old/current or new Debt management plans. These clients have taken ownership of their debts and now need help sticking to their budgets in order to clear these debts. A great help would be lenders offering fixed rates to these client on SVR’s, this would allow them a stable environment to help keep their budgets under control when rate move in the future!
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