US hedge fund mandates BofA for UK legacy RMBS
Davidson Kempner Capital Management has mandated Bank of America for Stratton Mortgage Funding 2020-1, a UK RMBS deal made up of mortgages originated between 2002 and 2008. It was priced on Thursday and its 2.95-year senior notes landed at 90bp over Sonia.
The US hedge fund is sponsoring the transaction through a risk retention vehicle, Burlington Loan Management, and through the vehicle listed as the seller, Ertow Holdings.
A pool of first-lien buy-to-let and owner-occupied mortgages is backing the transaction.The hedge fund used both of these vehicles ...