JP Morgan CIO anchors UK RMBS at pre-virus coupon

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By Owen Sanderson
31 Mar 2020

JP Morgan’s chief investment office is likely to be the main anchor buyer in the £1.29bn senior tranche of a new UK RMBS, the second slug of a portfolio sold by the UK government’s bad bank last year. The deal, officially priced on Tuesday, was executed at levels determined before the coronavirus panic blew out spreads for UK mortgage bonds.

Pimco bought the Chester portfolio, which was financed in two separate deals by Citi and BNP Paribas. Citi is holding the risk retention in both Chester A, the first £2bn slice it financed and securitized last April, and Chester B, the £1.6bn book securitized on Tuesday.

Chester A ...

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