Delta Lloyd swapless in public as it widens audience for rate cap

By Tom Porter
13 Nov 2014

Delta Lloyd is taking the swapless RMBS concept public after mandating banks to broadly syndicate its second Arena NHG prime Dutch RMBS of the year, which will again feature an interest rate cap provided by ABN Amro instead of a traditional swap.

Post-crisis regulation has rendered swaps more costly for all parties. If a swap counterparty is downgraded, the issuer has to post more collateral and investors face the risk of their bonds being downgraded.

The number of available swap counterparties in the European structured finance market has dwindled further ...

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