European securitization investors this week are pricing longer duration deals tighter than earlier in the year, made comfortable by the ‘simple, transparent and standardised’ (STS) label. This is being demonstrated on Tuesday by Argenta Spaarbank's Green Apple RMBS deal.
“There isn’t very much of it,” said a managing director at a syndicate desk away from the deal, referring to STS paper. “If you look at the Green Apple deal it is doing phenomenally well. It looks like the long duration is not really bothering people.”