Resurgent buy-to-let mortgage provider The Paragon Group of Companies has announced details of the latest securitisation of part of its mortgage book.
Rejoicing in the name Paragon Mortgages (No.17), or PM17 for short, the issue amount is £200m, comprising: £175m of AAA rated notes at a margin of 1.35 percentage points (or 135 basis points) above the three-month London Interbank Offered rate (LIBOR); £10.5m of AA rated notes at 190 basis points (bps) over three-month LIBOR; £10.0m of A rated notes at a margin of 290 bps over three-month LIBOR; £4.5m of subordinated notes retained by Paragon.
Paragon will also invest £6m in the First Loss Fund, which will bring its total investment in PM17 to £10.5m, or 5.25% of the issue amount.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The funds from the securitisation will be recycled back to Paragon's lending programme.
JH
-
Is it time to ride the recovery in emerging markets?Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
Could the Enterprise Investment Scheme cut your tax bill?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
