B&B £1bn RMBS gives clues to likely covered supply

The extent to which the residential mortgage backed securities market can be relied on for funding has become clearer with the launch of the first such transaction for a UK mortgage lender since August, Bradford & Bingley’s £1bn Aire Valley 2007-2 RMBS. Should the RMBS market prove healthier than expected, expectations of a surge in covered bond issuance from the UK and elsewhere could be tempered.