AIB funds in RMBS as EBA warms to ABS

AIB has raised the first unguaranteed funding for an Irish institution since 2009 through its Tenterden RMBS. The securitisation structure was developed precisely to deal with these challenging situations and rests on the effective de-linkage of collateral from sponsor. Just as de-linkage can be abused, it also serves as a major strength. And having come through the crisis the other side, the RMBS market is now in a stronger place. With the EBA recognising the need to grow the securitisation market it can only be a matter of time before it sits alongside covered bonds in the suite of wholesale mortgage funding options.