SNS Hermes 18 structure removes call option concerns

18 Sep 2012

After toying with the idea of structuring a swap-free deal, SNS Bank’s new Hermes RMBS not only includes a swap but it has also been structured with a fixed rate ‘A3’ tranche designed to ensure investors are fully paid before the bonds are called.


The senior part of the capital stack contains €192m ‘A1’ and €384m ‘A2’ floating rate tranches with WALs of two and five year respectively. BNP Paribas, Credit Suisse and Jefferies are leads on those tranches.

The structure also includes a €307m ‘A3’ partially pre-placed, partially retained fixed rate tranche ...

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