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Cerberus Plans Biggest European Mortgage Bond Since 2007

  • Significant portion of deal pre-placed with investors
  • Bonds backed by mortgages from failed lender Northern Rock
Updated on

Cerberus Capital Management hired Morgan Stanley to arrange what could be the largest sale of asset-backed debt in Europe in more than nine years, according to people familiar with the matter.

A significant portion of the 6.2 billion pounds ($8.8 billion) of new bonds in the securitization known as Towd Point Mortgage Funding 2016-GR1 have been pre-placed with investors, said the people, who asked not to be identified because they’re not allowed to talk about it. The bonds, which are expected to price on April 8, are backed by mortgages from failed U.K. lender Northern Rock Plc, the people said.