Macquarie Bank and Bank of America Merrill Lynch are marketing 197.7 million ($220.5 million) of German residential mortgage securities.
Kingswood 2015-1, the first German RMBS transaction in eight years, pools loans originated by Paratus AMC formerly known as GMAC-RFC bank. The issuer originated four prior German RMBS: E-MAC DE 2005-I , E-MAC DE 2006-I, E-MAC DE 2006-II and E-MAC DE 2007-I.
Kingwood pools the performing part of the pool initially securitized in E-MAC DE 2009-1 transaction. All loans in the pool are secured on residential properties located in Germany.
Moody’s Investors Service has assigned preliminary ratings to the transaction. The trust will offer Aaa’ rated class A notes, which benefit from 29.92% credit enhancement; Aa1’ rated class B notes, which benefit from 19.92% credit enhancement; A2’ rated class C notes, which benefit from 16.18% credit enhancement; Baa2’ rated class D notes, which benefit from 13.47% credit enhancement; and Ba1’ rated class E notes, which benefit from 10.67% credit enhancement.
The pool has a weighted average loan to value ratio of 83.8% and loans pay, on average, an interest rate of 5.9% for an average 30-year term.
The structure looks similar, in terms of assets and structure, to the issuer’s previous deals except that 50.8% of the loans in the pool are backed by non-owner occupied properties. Loans on non-owner occupied properties tend to default more frequently than loans back by owner-occupied properties, according to Moody’s.