The securitisation was led by Lehman Brothers and also managed by HVB, CDC IXIS Capital Markets, Bank One Europe Limited and Fortis Bank. It was sold in US dollars, sterling and euros. This latest issue brings SPML’s 12 month securitisation total to £1,075 million – the first time SPML has securitised over £1 billion assets in one year.
Reflecting the high quality of the mortgage loan book and SPML's proven servicing ability, approximately 93% of the total was given the highest rating of AAA and 7% was rated BBB. The bonds were wrapped by a MBIA insurance policy, which guarantees the payment of principal and interest, and which enabled such a high proportion to gain a triple A rating. The insurance also helped to improve the overall financing cost of the securitisation. This is MBIA’s first insurance-wrapped issue with SPML.
SPML managing director, Bill Cherry, commented “Our ability to successfully maintain three well rated and priced bond issues a year - this year breaking the £1 billion barrier - reflects on SPML's continued high quality loan origination, “five-star” servicing, and collections management systems, which are now well known and valued in the marketplace.“
