Dutch mortgage lender Obvion, which is a subsidiary of Rabobank, is marketing securities backed by residential mortgage and construction loans via Storm 2015-II.

Standard & Poor’s has assigned a preliminary ‘AAA’ rating to the class A notes, which benefit from 7.02% credit enhancement. The notes have a legal final maturity date of June 2054 but can be callable starting in September 2021. There are also three subordinate tranches of notes with ratings ranging from 'AA+' to 'BB' and an unrated class E tranche.

S&P did not provide sizing on tranches but said that the senior notes will constitute 94% of issuance.

The bonds are backed by a €1.44 billion ($1.6 billion) portfolio of prime Dutch residential mortgage loans. The properties are 100% owner occupied. Loans in the pool have a weighted average loan-to-value ratio of 97% and range in size from €3,316 to €946,202. They are seasoned by a weighted average paid 4.74 years and have a remaining term of 24.47 years.

Similar to previous deals issued from the STORM series, the pool includes construction loans; initially these account for 8.44% of the pool. The €3.24 million construction deposits remain with the seller until the respective borrower makes a request. Rabobank provides a guarantee for this amount.

Another 36.37% of the pool is covered by the NHG Guarantee, which is a public mortgage loan insurance scheme in the Netherlands. The NHG Guarantee covers the outstanding principal, accrued unpaid interest and disposal costs.


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