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RMBS

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  • UK buy-to-let mortgage provider Paragon Group has renewed and expanded its mortgage warehouse facility with Macquarie Bank, allowing for larger issuance when it comes to market next year.
  • Leads are set to price Virgin Money’s Gosforth 2012-2 RMBS at the tight end of guidance, with orders close to £1.5bn even at the lower spread.
  • Relentless technical demand for ABS continued to drive pricing this week as another UK prime RMBS, Virgin Money’s Gosforth 2012-2, targeted a post-crisis record tight print, bringing funding levels closer to the Bank of England’s Funding for Lending Scheme.
  • The Netherland’s Friesland Bank has offered to buy back five Stichting Eleven Cities RMBS at or above par, potentially enabling the lender to redeem the bonds early without the need for consent of other noteholders.
  • Pepper, an Australian non-bank mortgage lender, is marketing a residential mortgage-backed securities deal targeting Stateside investors with a U.S. dollar slice.
  • Spreads in new issue U.K. prime residential mortgage-backed securities are set to tighten further as initial guidance on Virgin Money’s Gosforth 2012-2 deal emerged at three-month LIBOR plus 50 bps, +/- three basis points on Thursday, ahead of expected pricing on Friday.
  • Virgin Money is increasing its Gosforth RMBS by £250m to accommodate investor demand and is set to price the bond at a level that could compete with Bank of England funding levels.
  • Investment bank Gleacher & Co. Securities has hired former UBS managing director Ted Kelleher to head its middle market fixed-income group.
  • Virgin Money’s Gosforth 2012-2, which is being marketed to investors this week, is expected to be well-bid following the recent dearth of new issue securitization paper—but a sharp tightening may see some investors turn their back on the deal.