Structured finance is so flat cap these days…
The Co-operative Bank is delighted to have today successfully launched and priced Silk Road Finance Number One, a GBP 2.5bn prime residential mortgage-backed securities transaction. The transaction re-establishes The Co-operative Bank’s presence in the capital markets following the completion of its merger with Britannia Building Society in August 2009.
In addition to being the inaugural prime residential mortgage-backed transaction from The Co-operative Bank, Silk Road Finance Number One is only the second public UK RMBS transaction in the market this year and is the first such transaction with a static-pool structure since 2007.
For reference, it was Lloyds that managed to get away the first RMBS issue in the UK since the onset of the Crunch – back in September 2009.
The Co-op notes have an expected average life of 3.9 years and were priced at 3m GBP LIBOR plus 140bps and loads of dividend stamps.
The transaction features a static pool, pass-through structure and is collateralised by a pool of seasoned UK first lien, owner occupied residential prime mortgage loans with a varied geographical diversification, originated by the former Britannia Building Society or by The Co–operative Bank under the Britannia brand name.
Disclosure: the author was born in Oldham, Lancs, and lived for a period in Rochdale, home of the Pioneers.
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