Strong 2018 B.V: 20 December 2018
After a gap of some two years, originator Obvion N.V. revives the Strong name. As previously, the issuer will make payments on the notes from payments of principal and interest received from a portfolio comprising mortgage loans originated by the seller which have the benefit of an NHG Guarantee and are secured over residential properties located in the Netherlands.
At the cut-off date, the pool consisted of 3,694 mortgages (in 7,867 loan parts), with an average principal balance per borrower of Eur180,231. All loans have been advanced to owner-occupiers. Redemption type (by net outstandings): annuity 46.74%, interest only 31.93%, bank savings 8.20% and savings 5.96%. Interest payment type: fixed 98.56%, floating 1.44%. The WA CLTMV is 87.91% (original was 95.19%), the WA CLTOFV is 98.55% (original was 106.76%) and the WA seasoning is 4.83 years. Regional concentration (by net outstandings): Zuid-Holland 17.64%, Noord-Brabant 17.02%, Gelderland 11.07% and Noord-Holland 10.95%.
EU Risk Retention: The Seller, as originator, has undertaken that for as long as the notes are outstanding it will at all times retain a material net economic interest of not less than 5% in the securitisation transaction in accordance with each of Article 405 of the CRR, Article 51 of the AIFMR and Article 254 of the Solvency II Regulation. As at the Closing Date such interest will be comprised of an interest in the first loss tranche, in this case the Class C Notes and, if necessary, other tranches having the same or a more severe risk profile than those sold to investors, as required by Article 405 of the CRR, Article 51 of the AIFMR and Article 254 of the Solvency II Regulation.
Volcker Rule: The Issuer is structured so as not to constitute a "covered fund" for purposes of the regulations adopted to implement Section 619 of the Dodd-Frank Act (such statutory provision together with such implementing regulations, the Volcker Rule).
Compare/contrast: Strong 2016, Dutch MBS XIX B.V., Dutch Property Finance 2018-1