Kensington Mortgages has launched its latest £700m mortgage-backed securitisation.
Kensington says the transaction was fully subscribed as demand was high and price tightened from early indications. Residential mortgage securities 18 plc (RMS 18) was priced on June 28 2004.
The £700m transaction is the second Kensington securitisation in 2004. Pricing continued the improving trend seen with RMS 17 in February, with all tranches having tightened from those levels.
Simon Kingdon, group finance director at Kensington, says: “We are delighted to announceour latest securitisation transaction, RMS 18. Market demand for Kensington's securitisations has continued to strengthen. The RMS 18 pricing has resulted in a significant reduction in our cost of funds. Morgan Stanley and The Royal Bank of Scotland, joint lead managers,continued to broaden and deepen the global investor base and have achieved excellent results.”