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RMBS

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  • FIG
    Clydesdale Bank bought back £170.7m equivalent of senior bonds issued by its Lanark RMBS master trust after increasing the offer shortly before the extended deadline last Friday. Clydesdale purchased $99m nominal of ‘3A1’ notes at 87 cents on the dollar, E85m of ‘3A2’ notes at 87 cents, and £40m of ‘4A1’ notes at 89.5 cents.
  • Panellists at the Global ABS conference in London criticised the credit guarantee arm of the UK government’s RMBS support scheme as largely unworkable on Wednesday.
  • Clydesdale Bank has joined the queue of securitisation sponsors buying back their own deals.
  • Last week’s deferral of interest on three subordinated tranches of high loan to value RMBS originated by Caja Madrid has prompted Standard & Poor’s to downgrade the notes to D.
  • Henderson Global Investors is marketing a Eu250m fund investing in discounted asset backed securities. Its mangers believe now is a good time to pick up fundamentally quality assets at a good price.
  • Britannia Building Society is calling all outstanding tranches of Leek Twelve, a UK non-conforming RMBS issued in 2004, at their expected maturity date on June 22.
  • Absa Capital has closed the first South African securitisation to be offered to investors this year.
  • Two of Caja Madrid’s high loan to value RMBS issues are to defer interest on some subordinated notes after soaring arrears breached triggers in the documentation.
  • UK non-conforming RMBS was hit by further downgrades this week. Standard & Poor’s cut issues from Merrill Lynch and Oakwood and placed issues from Investec and GMAC RFC on CreditWatch Negative while Moody’s cut HVB’s Bluestone Securities 2007-1. Meanwhile Fitch reported that long-term arrears in the sector increased by nearly 30% during the first quarter to 21.17%, with repossessions reaching 3.71%. Five transactions rated by Fitch have exhausted their reserve funds.