Abbey National securitization breaks new ground

Author: | Published: 1 Sep 2000
Angela Clist, Allen & Overy

 

Securitization does not stand still. With banks searching for new and more efficient ways of raising funds, new structures and assets are a constant source of research and planning. In August Schroder Salomon Smith Barney (SSSB) was reflecting with pride on its latest deal, a £2.3 billion ($3.4 billion) securitization of part of Abbey National's mortgage portfolio. Its legal adviser on the deal, Allen & Overy, was also glowing with how an innovative structure could be used to increase flexibility and reduce costs to the borrower. Angela Clist, the Allen & Overy partner in charge of the team, says: "It has changed the face of mortgage-backed securities in the UK."

The Abbey National deal contains a number of firsts for the securitization market, but is firmly based on the Mound Financing vehicle constructed for Royal Bank of Scotland in April....

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