What does a pooled issue mean?

A pooled issue, in relation to securitisation, is where a number of different entities will raise capital through a single vehicle which then on-lends to the respective entities. The entities will "pool" their assets together as security for the bond allowing smaller funding requirements to be met through the capital markets where a minimum issue size would be in excess of £40-50m.

Benefits:

Access to Capital Markets: Individual entities can raise smaller amounts allowing access to the Capital Markets

Access to long term funding: reducing refinance risk (whereas traditional bank lenders currently will only lend short term 5-10yrs max)

Shared costs: legal, trustee and other associated costs split.

Credit Rating: Combined credit can improve the credit rating thus tightening pricing.