RMBS spreads sanguine ahead of S&P “doomsday”

With 80%-90% of European RMBS set to go on CreditWatch Negative with S&P next Monday, one might expect a game of hot potato, as the market tries to second-guess which transactions will escape unscathed. Instead, there’s a stable market with little spread movement — except in Granite mezz, which has held onto most of last week’s gains. With “orphaned” bonds likely to suffer under new S&P criteria, why is the market so quiet? Read EuroWeek on Friday for more.