This is the largest securitisation by Paragon to date and for the first time includes loans originated by Mortgage Trust bringing total issuance to £9.7 billion through 43 public transactions.
Paragon has offered bonds in multi-currencies attracting new investors in the United States and Continental Europe. Demand was strong across all currencies and the transaction size was increased in an attempt to satisfy the demand.
The notes were issued in various tranches as well as multi-currencies and were rated by Standard & Poor’s, Moody’s and Fitch.
The pool consists almost entirely of buy-to-let mortgages. Paragon is a leading player in the increasingly important buy-to-let market where it specialises in meeting the requirements of the professional landlord. The credit quality on all of Paragon’s buy-to-let portfolios has been excellent.
Nick Keen, Paragon’s Finance Director comments:
"This transaction continues the development of the Group’s securitisation programme, bringing the Paragon name again to investors in the US, as well as to investors in Europe and the UK. Investor interest was highly positive and resulted in the upsizing of the deal.
Paragon continues to focus on the professional buy-to-let market where asset performance remains excellent and where growth prospects are high. The recent acquisition of Britannic Money, now branded Mortgage Trust, which now also focuses on originating prime buy-to-let mortgage assets, will enhance the Paragon programme further."
