World’s largest bond investor rushes home loans from Kensington Mortgage
World’s biggest bond investor snags £5bn in home loans from Kensington Mortgage
The world’s biggest bond investor has invested £5billion in home loans from Kensington Mortgage, The Mail on Sunday has learned.
Last month Barclays bought part of the lender’s mortgage portfolio and other assets in a £2.3bn deal.
Swoop: Goldman Sachs advised Pimco – co-founded by US billionaire Bill Gross – on the deal
Now sources have revealed that investment giant Pimco has at the same time signed a deal to buy the loans Barclays failed to acquire from the owners of Kensington – private equity group Blackstone and the Sixth Street investment.
The mortgage portfolio comprises between £4 billion and £5 billion of securitized loans signed before October 2021.
Goldman Sachs advised Pimco – co-founded by US billionaire Bill Gross – on the deal.
Two sources said they believe the investment bank could take a stake in the portfolio acquired by California-based Pimco, which has more than $2 trillion in assets under management.
The company, owned by German insurer Allianz, has traditionally invested in bonds. But with interest rates so low in recent years, she has sought higher-yielding assets like real estate. Kensington specializes in providing ‘non-standard’ residential mortgage loans to the self-employed and elderly, often turned down by high street lenders.
All parties declined to comment. A source said the deal could attract attention after the sale in 2015 of £13bn of Northern Rock’s old mortgages to US private equity group Cerberus.
After snatching up subprime loans, she was then accused of running after debt to make her investments profitable.
Cerberus has described itself as a “responsible long-term investor”.