"Since the markets reopened in June, the RMBS market has seen a flurry of activity."
The deal is the largest public residential mortgage-backed securitisation (RMBS) to be successfully sold to investors following the easing of Covid-19 lockdown restrictions.
Kensington has accessed the UK RMBS markets twice since the reopening of capital markets in mid-June, raising in excess of £1bn in the last month.
RMS32 comprises seasoned non-conforming first charge and second charge residential mortgages. It will allow the refinancing of two existing Kensington legacy securitisations, RMS 28 and KMS 2007-1 that will be called in September.
The deal marks the 21st UK RMBS deal issued by Kensington since its acquisition by Blackstone and TPG in 2015, bringing the total bond issuance to over £11.5 billion.
Alex Maddox, capital markets and digital director at Kensington, commented: “Since the markets reopened in June, the RMBS market has seen a flurry of activity. This deal’s oversubscription and the fact that we were able to follow a more standard syndication process demonstrates investor appetite for our funding and the strength of our underlying business. We continue to be the most frequent issuer of RMBS in the UK RMBS market, and see further opportunities for the year ahead.
“We anticipate the recently announced temporary stamp duty changes will help to kickstart the housing market and increase demand for mortgage products that are tailored and suited to individual’s needs. In this uncertain climate, people require pragmatic lenders who are able to take the long view.”
