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UK LENDER HFC Bank launched its debut securitisation this week, a L163m consumer loan-backed issue via special purpose vehicle Prospect 1 Plc.
The originator said it was very pleased with the smooth structuring of the deal, which was likely to be the first of a series.
London asset-backed bankers argued that the deal was aggressively priced for a debut, but lead manager UBS said it was confident the bond would sell well once investors had worked through the details of a first-time issue.
"We wanted to demonstrate that we could use the securitisation market in the UK as efficiently as we could in the US," said Adrian Hill, chief financial officer at HFC Bank "I think we achieved that."
He said key targets included: arriving at a deal with a similar level of overall credit enhancement and economics as in a previous packaging of unsecured personal loans, completed for Barclays Bank by BZW; achieving suitable accounting treatment in the UK and the US; and doing all this within a two-month timetable.
All those targets were met,...