Another Fine Mezz

How do you like your buy-to-let mortgages?

Mar 12, 2025
Frank Jackman, a covered bond editor at Global Capital, joins to discuss Paragon Bank's innovative buy-to-let covered bond. He sheds light on the shift from traditional RMBS to covered bonds, emphasizing the pricing dynamics and security benefits. The conversation also dives into the evolving Italian collateral market, highlighting investor interest and bridging loan popularity. Additionally, they explore contrasting loan structures between the US and UK, and the complexities of capital management in finance, revealing fascinating insights into market trends.
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ANECDOTE

First Tottenham Fan

  • Frank Jackman is the first Tottenham Hotspur fan on the podcast.
  • This adds a new dynamic to the traditionally Arsenal-supporting podcast.
INSIGHT

Buy-to-Let Covered Bond Innovation

  • Paragon Bank issued a buy-to-let covered bond, a novel approach in the market.
  • This bond, priced at 60 basis points over Sonia, attracted a substantial order book, indicating strong investor interest.
INSIGHT

Covered Bond Program Comparison

  • Coventry Building Society's covered bond program offers retained deals, unlike Paragon's public offering.
  • Issuers need a large cover pool to support covered bond financing, potentially limiting wider adoption of this approach.
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