Barclays returns to RMBS, but no flurry expected to follow
Barclays Bank’s decision to offer RMBS for the first time since the crisis marks the asset class’s return to competitiveness, but few other issuers are in a position to benefit, according to ABS bankers. As many from traditional covered bond jurisdictions do not even have RMBS programmes available, they face lengthy structuring and rating processes before tapping the market.
At the same time, peripheral names remain shut out of the markets, particularly the dollar-denominated demand that has underpinned recent UK issues. Many Nordic and German issuers still rely on covered bond funding.
Spreads on senior unsecured and covered bonds carrying European bank risk have blown out since the
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