"When we launched the roadshow for this transaction, no-one could have predicted the full extent of the market turmoil that was about to unfold."
Despite significant market turbulence from the global spread of the Coronavirus, it took LendInvest six business days to price the transaction after opening investor discussions.
The securitisation comprised £285 million of UK prime buy-to-let mortgage loans and was priced at 1.07% over SONIA - 23bps better than LendInvest’s first securitisation last year.
Rod Lockhart, chief executive of LendInvest, commented: "When we launched the roadshow for this transaction, no-one could have predicted the full extent of the market turmoil that was about to unfold. It has been a truly unprecedented and unusual environment to agree and settle a transaction as substantial as this for LendInvest - let alone the whole UK mortgage market. The circumstances mean it’s all the more rewarding to have returned to the RMBS market as emphatically as we have done with this transaction.
"Our much-improved pricing and the appetite for this transaction from both existing and new investors have proven our liquidity, our funding model and the resilience of our wider business strategy to withstand market uncertainty. This transaction ensures our levels of BTL lending needn’t dip over the coming months as the world works through this most unusual time.”
