Nationwide’s Silverstone will feature all three major currencies
GlobalCapital Securitization, is part of the Delinian Group, DELINIAN (GLOBALCAPITAL) LIMITED, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 15236213
Copyright © DELINIAN (GLOBALCAPITAL) LIMITED and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
SecuritizationRMBS

Nationwide’s Silverstone will feature all three major currencies

Silverstone

Nationwide’s new UK RMBS, Silverstone 2015-1, will feature tranches in euros, dollars and sterling, and will aim for a £1bn equivalent size. This is the largest spread of currencies of any UK master trust deal since the Funding for Lending scheme was announced in 2012.

The sterling tranche will have an average life of 2.9 years, while the euro tranche will have an average life of 4.9 year. The average life of the dollar tranche was debated during the marketing process at the ABS Vegas conference, but the announced capital structure on Thursday came with a 4.9 year life.

Nationwide will, however, have to convince US investors that it is committed to the market, after a three year absence since Silverstone 2012-1 in March 2012. That deal includes $2.05bn of dollars, split into a $1bn three year and a $1.05bn five year.

Leads BAML, Barclays, Citi and Deutsche Bank published initial price thoughts on Thursday, at 40bp area for the three year sterling, 30bp area for the five year euros and 55bp area for the five year dollars. All tranches were subject for European accounts at the close of business on Thursday, with pricing targeted for Friday.

Two traders away from the lead managers had expected that the five year euro tranche would come between 35bp and 40bp over three month Euribor, while the three year sterling would come between 30bp and 35bp — substantially tighter than 40bp initial pricing talk. The wider level of the dollar tranche is helped by the easier swap from dollars, meaning Nationwide can give away more on the spread.

According to the trader, very little flow has been seen in prime UK master trust RMBS, which has largely been locked away in portfolios. With very low new issue supply since 2012, investors have avoided trading out of deals because of the difficulty of getting invested again.

Senior euro notes in Granite, the Northern Rock master trust, are seen are 40bp, but with a short average life of around one year.

Gift this article