RMBS

  • Principality taps HSBC, Lloyds for prime UK STS RMBS

    Principality taps HSBC, Lloyds for prime UK STS RMBS

    Principality Building Society has mandated HSBC and Lloyds to arrange its sixth UK RMBS deal, offering a single three year triple-A tranche after retaining its last deal in March due to concerns around the ‘simple, transparent and standardised’ (STS) label.

  • Cerberus sees better value in its mezz than the market

    Cerberus sees better value in its mezz than the market

    Cerberus Capital Management is retaining all the mezz bonds for its refinancing of the Vantage portfolio of UK mortgages. As a financial sponsor, Cerberus would usually make full use of the leverage available in securitization, and sell a full capital structure, but if the market can’t hit its price targets for the mezzanine bonds, it would rather buy them itself than sell them cheap.

  • Lloyds seeks STS label, Sonia switch for RMBS shelf

    Lloyds seeks STS label, Sonia switch for RMBS shelf

    Lloyds is seeking consent from the note holders of its Permanent UK RMBS Master Trust to apply the ‘simple, transparent and standardised’ (STS) label to the bonds, as well as switch the reference rate from Libor to Sonia.

  • Pimco takes dominant position in UK mortgage market

    Pimco takes dominant position in UK mortgage market

    The market for legacy UK and Irish mortgages is large and diverse, but it has one monster buyer, Pimco. The California-based bond investing giant has bought bonds backed by more than £12bn of loans from the UK government’s bad bank in the last two years, almost all of which went into its $75bn Income Fund, writes Owen Sanderson.

  • Distressed loan trading leaps forward as new tech tool slashes settlement time

    Distressed loan trading leaps forward as new tech tool slashes settlement time

    Distressed loans using US documentation are some of the slow trades to settle in the capital markets, with an average time of 67 days, reflecting onerous legal requirements under the Loan Syndication and Trading Association standard terms. A new tool released by IHS Markit as part of its ClearPar loan settlement platform has the potential to slash this delay, with a recent trade by Deutsche Bank taking just 10 days to settle.

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