World’s largest bond investor swoops on Kensington Mortgage’s home loans

The world’s largest bond investor has swooped on £5billion of Kensington Mortgage’s home loans, The Mail on Sunday has realized. 

Final month, Barclays purchased a part of the lender’s mortgage e book and different property in a £2.3billion deal. 

Now sources have revealed that funding large Pimco on the identical time signed a deal to purchase the loans Barclays didn’t purchase from Kensington’s homeowners – personal fairness group Blackstone and funding agency Sixth Avenue. 

The mortgage e book contains between £4billion and £5billion of securitised loans signed earlier than October 2021. 

Goldman Sachs suggested Pimco – co-founded by US billionaire Invoice Gross – on the deal. 

Two sources mentioned they believed the funding financial institution might take a stake within the portfolio acquired by California-based Pimco, which has greater than $2trillion in property beneath administration. 

The agency, owned by German insurer Allianz, has historically invested in bonds. However with rates of interest so low lately, it has sought property with the next return resembling actual property. 

Kensington specialises in offering ‘non-standard’ residential home loans to the self-employed and older folks usually declined by excessive road lenders. 

All events declined to remark. One supply mentioned the deal might appeal to consideration following the 2015 sale of £13billion of former Northern Rock mortgages to US personal fairness group Cerberus. 

After snapping up subprime loans, it was then accused of chasing the money owed to make a return on its investments. 

Cerberus described itself as a ‘accountable, long-term investor’.