Allen & Overy advises on largest post-crisis RMBS transaction
21 April 2016
Allen & Overy said today the GBP6.1 billion residential mortgage backed securitisation from Cerberus Capital Management LP, the largest transaction of its kind since the global financial crisis, indicates growing confidence in the securitisation market in Europe.
The bonds are backed by a pool of mortgages from the legacy book of NRAM, the former Northern Rock mortgage business which was nationalised in 2008. This deal follows Allen & Overy’s work on the sale of the GBP13bn asset portfolio by UK Asset Resolution (UKAR) to affiliates of Cerberus Capital Management LP in November 2015.
The transaction consists of seven rated tranches, the largest of which is a GBP4.7bn tranche rated AAA by Standard & Poor’s, Moody’s Investors Service and Fitch Ratings.
Allen & Overy advised Morgan Stanley as arranger and the joint lead managers. The team was led by London-based securitisation partners Sally Onions and Salim Nathoo and included securitisation associates Christina Nayman-Mills, Fiona McCrindle, Andrew Brooman, Jean Morice and Jia Wei Chin, tax partner Chris Harrison with Ben Brown and John Hwang, partner in New York, with Rolfe Hubley.
Sally commented: “The message this transaction sends is really important, not simply because of its sheer size, but rather how it underlines the growing confidence in the ABS market. Market participants will be reassured by its success and we expect to see other non-bank entrants come to the securitisation market over the course of the year.”
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