Banks seen returning to STS supply in H2

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By Tom Brown
01 Mar 2021

Banks could return to securitization markets in the second half of the year, raising hopes of a revival in simple, transparent and standardised (STS) supply, as issuers who have previously printed deals with the quality stamp look to replace funding as it rolls off, and treasury teams look to purchase high quality RMBS for their investment portfolios.

“About £300m of STS bonds are running off per month this year, and that will accelerate into next year,” said Dmitrij Levitski, a securitization structurer at Lloyds, speaking at S&P’s Bond Market Pulse EMEA Securitisation Update. “That means that you need one benchmark STS transaction per institution just ...

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