ING Group, which has a whopping E84 billion residential mortgage book, is considering bringing its debut residential mortgage-backed securitization. Its first deal could surface either late this year or early next. Robert Plehn, global head of securitization at ING Bank in London, says the Dutch bank is looking at securitization for regulatory capital and liquidity management purposes.
Plehn says the bank is still considering how its debut deal will be structured, for example whether it will be a partially funded synthetic deal or a cash deal. The initial size has not been set. ING has used mortgages as repo collateral with the Dutch central bank, but has never done a public RMBS deal, says Plehn.
Year-to-date the Dutch RMBS market has issued roughly E7.4 billion. ING's entrance will bring yet more liquidity, depth and diversity to the market, note ABS analysts. And, with its bulging mortgage portfolio, it could give other issuers competition for investor attention, they say.
ING is the second largest mortgage lender in the Netherlands after Rabobank and it originates mortgages through a number of channels. ING Bank, Postbank, Regio, Westland Utrecht and Nationale Nederland, CNE Bankiers and RVS all sell ING mortgage products.
