US banks back new Arran issue

Royal Bank of Scotland targeted US bank accounts, including JP Morgan, Citi, and perhaps Wells Fargo, when it preplaced £1.58bn equivalent of its Arran 2011-2 RMBS on Monday evening. The UK bank also retained $1.91bn of senior notes, split into tranches with coupons 2.5bp apart. Bookrunners were Bank of America Merrill Lynch, Citi, JP Morgan and RBS, with Wells Fargo present as co-manager. JP Morgan and Citi both disclosed in the offering circular that they were taking positions in the deal.