Drop Moody’s and leverage up: new Cerberus RMBS boosts triple-A portion

Cerberus has juiced up its latest UK buy-to-let RMBS deal by dropping Moody’s from the deal, which has a more dismal view of the market than its rival rating agencies. Among other structural changes, this has allowed the private equity firm to enlarge its triple-A tranche by more than 10 percentage points, giving a far more efficient capital structure.