Co-op’s Silk Rd guidance gives investors juice
Leads Barclays Capital, JP Morgan and Morgan Stanley released guidance on Co-op Bank’s new UK RMBS Silk Road No. 2 on Wednesday at 150bp-155bp over Euribor for the euro tranche and 155bp-160bp over Libor for the sterling tranche. This is well outside secondary levels for UK prime deals from Lloyds or Santander UK, which are still quoted with a 130bp handle for comparable three year maturities.
By Thursday night the leads had orders for around £400m of Silk Road No. 2, split roughly evenly between euros and sterling, with pricing expected at lunchtime Friday.
ABS spreads for core asset class senior notes have held up against the background of the Greek crisis, with UK prime
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