Lowest yield for RCI as ABS investors feel the squeeze

Accustomed to years of triple-digit spreads, ABS investors now face a squeezed spread environment. Just how squeezed it has become was made clear this week by the latest auto ABS from RCI Banque, which priced a €700m deal at its tightest ever spread since the financial crisis — and its lowest ever all-in yield, writes Joe McDevitt.

  • 26 Oct 2012

The deal was priced in line with market expectations and earned an enthusiastic response, but bankers said the hunt for yield would continue to push investor demand away from the prime space and down the credit curve. Mezzanine notes, for example, are attracting more interest than before.

Those investors ...

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GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 4,755 19 11.75
2 Citi 4,288 14 10.60
3 Rabobank 2,633 4 6.51
4 Goldman Sachs 2,615 4 6.46
5 Barclays 2,603 8 6.43

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 Citi 82,406.77 239 12.85%
2 Bank of America Merrill Lynch 71,317.58 219 11.12%
3 Wells Fargo Securities 62,984.09 198 9.82%
4 JPMorgan 45,920.23 145 7.16%
5 Credit Suisse 37,235.50 114 5.81%