RMBS wider than covered but less collateral used

The RMBS market remains active, with an Italian and a UK deal book building, while a Dutch deal has just closed. The funding levels for all of them are more expensive and of a shorter duration, compared with covered bonds from the same issuers. However, as a funding tool covered bonds use more collateral, meaning investors get more protection from the asset pool alone, not to speak of recourse to the issuer.