Dutch mortgage originators using the securitization market for funding purposes, are increasingly looking to add dollar tranches to their residential mortgage-backed securitizations as a way to diversify their investor bases, say securitization bankers and issuers.
An official at SNS Bank in Amsterdam says the bank's next RMBS will remain focused on European investors, but the following one will feature a dollar tranche. He says SNS' competitors will likely follow suit, especially if they believe European investors to be full up on their paper. In fact, NIB Capital, ASR Bank and Delta Lloyd are all considering dollar tranches for upcoming deals, say securitization bankers. Calls to Delta Lloyd were not returned. Jeroen Looman, in NIB's structured finance department, did not respond to an e-mail. Officials at ASR Bank could not be reached for comment.
To date, there have been two Dutch deals with dollar tranches--STREAM from ABP and SwAFE from Zwitserleven. Last year, nearly E10 billion in RMBS issuance came from the Netherlands, much of which was from large repeat issuers.
Large U.K. repeat RMBS issuers such as Abbey National, HBOS and Northern Rock, which issue billions of pounds worth of paper each year, have already tapped the U.S. market to diversify their investor bases.