Marriott timeshare guidance comes amid declining yields

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By Ryan Bolger
29 Sep 2014

Pricing guidance for Marriott Ownership Resort’s $240m timeshare ABS was announced between 95bp and 100bp over interpolated swaps on Monday. Yields for new timeshare deals have declined as ABS markets have picked up, meaning some buyers are no longer interested in the sector.

“Coming out of the crisis, it was an attractive asset class, but we don’t see any opportunity there given our current yield needs,” said a portfolio manager at a life insurance company.

The notes, MVWOT 2014-1, are collateralised by timeshare loans underwritten and serviced by Marriott Ownership Resorts ...

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