Big demand for Coventry RMBS marks master trust evolution

By Tom Brown
23 Jul 2020

Coventry Building Society (CBS) is racing to price Economic Master Issuer 2020–1, with the help of arrangers HSBC and Lloyds, to meet the huge demand for the deal, which is a hybrid between a master trust structure and a standalone RMBS — the first of its kind. The transaction, set to herald the next step in master issuer structures, is an innovation which could open the door to more financial institutions committing to long-term RMBS programmes, writes Tom Brown.

The first deal from the shelf — and the first new UK master issuer trust since 2008 — uses a single special purpose vehicle (SPV) rather than the traditional three for a typical master trust structure. The new format reduces the documentation work and therefore the cost for ...

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