Sterling RMBS blowout as non-UK investors return to market
Issuers priced two sterling residential mortgage-backed securities (RMBS) deals this week, with Precise Mortgage Funding 2020–1B showing an unprecedented five times coverage on senior notes and up to 12 times on the mezzanine tranches, as overseas investors return to the sterling market.
Bank of America and Lloyds led the three-year triple–A notes to price at 93bp over Sonia on Thursday afternoon — 7bp tighter than initial price thoughts. Mezzanine tranches saw final spreads tighten by double-digit figures.Traders and syndicate bankers called the five times oversubscription on the senior tranche ...
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