The publication recognised PMI Europe for its credit enhancement transaction of approximately €22 million (£14.9 m) of residential mortgage credit risk on an unrated, first-loss tranche of a German residential mortgage-backed security for Germany’s DZ Bank AG.
The transaction stands out as the first RMBS first-loss transaction to securitise existing securities from several years back - the “Bauhaus” mortgage-backed securities were issued in 2000 - and has been viewed as establishing a new balance sheet management tool for banks. PMI Europe has previously completed other structured first loss RMBS transactions and is to date, the only consistent player in the market to have closed first-loss credit enhancements.
“PMI has positioned itself as the dominant RMBS first-loss investor in Germany, having purchased all three such deals to date” commented Asset Securitization Report.
“PMI Europe is thrilled that Asset Securitization Report recognised and awarded our company with its highly regarded European “Deal of the Year” ”, said Tony Porter, Managing Director, Chief Operating Officer, PMI Europe.
“This award recognised our ability to break new ground and take securitisation technology to the next level. The transaction was an extremely significant accomplishment for our company. We have now reached the point where investors are generating demand for this type of transaction, a situation we could only have hoped for when we started three or four years ago, ”said Porter.
