Aegon Nederland N.V. plans to issue Dutch residential mortgage backed securities via its SAECURE series.
Sizing on the deal, SAECURE 14 will depend on investor interest and has not yet been determined. Standard & Poor’s has assigned preliminary ratings of AAA’ to the class A1 and A2 floating-rate notes. The structure will also offer class B, C and D notes that will not be rated by S&P.
The pool is made up of performing loans secured on first- and consecutive-ranking mortgages over Dutch properties. All of the loans in the pool benefit from a NHG guarantee -- the public mortgage loan insurance scheme in the Netherlands. The guarantee protects borrowers from any residual debt after a foreclosure following a default on their mortgage loan. The NHG Guarantee covers the outstanding principal, accrued unpaid interest and disposal costs.
Moody’s noted in its presale report that the portfolio's weighted-average loan-to-value (LTV) ratio is high, compared with deals in other European jurisdictions. But these highers LTVs “do not necessarily reflect higher risk in the Dutch mortgage market".