Paragon tests pricing well inside guidance

Leads on UK buy-to-let RMBS Paragon 17 are testing investor appetite for the senior notes at 15bp inside initial price thoughts. At 135bp over Libor, the level is the same at which Co-operative Bank sold a prime RMBS transaction just three months ago — at the time the year’s tightest UK print — in a sign of how far spreads have tightened this year.