Aegon residential mortgage backed security reaches post-crisis record

March 19, 2014

On March 14, 2014 Aegon completed the sale of more than 1.5 billion euro of residential mortgage backed securities (RMBS). The transaction, SAECURE 14 NHG, achieved the best pricing for Dutch RMBS since the financial crisis.

Aegon Netherlands, is one of the country's top four mortgage providers, selling around 3.2 billion euro of mortgages in 2013. A major part of this was absorbed by the balance sheets of Aegon NL's insurance companies. The remainder is financed with residential mortgage backed securities sold to institutional investors.

A 343 million euro two year 'A1' tranche was priced at three month Euribor plus 40bp and 1,023 million five year 'A2' tranche at 72 bp over the same benchmark. Aegon drew praise from bankers for the size of its latest offering, SAECURE 14 NHG.

SAECURE 14 NHG Oversubscribed

Strong investor demand led to the two tranches being oversubscribed 2.5 and 1.9 times respectively, resulting in the tightest Dutch residential mortgage backed securities print since the crisis.

Bas Warmerdam, from Aegon's Corporate Treasury department puts the success down to combined areas of expertise: "Aegon Netherlands have unique mortgage expertise and products and Corporate Center Treasury and Aegon Netherlands Capital Management have the capital markets structuring capabilities, and connections to the banking panel."

Niels Roek of Aegon Netherlands Capital Management, shared these positive remarks, adding: "By closing this successful transaction we've proven the strength of our Dutch mortgage operations and maintained our strong position in the RMBS market".

Written by: Aegon