Sterling slump ruins UK banks’ Q4 RMBS plans

An anticipated wave of UK RMBS from the country’s large banks in the fourth quarter of this year is now unlikely to materialise, according to ABS bankers. The last two UK RMBS prints have met with underwhelming responses with sterling investors apparently holding on to cash, while a big sale of legacy RMBS from the UK’s bad bank last month widened the market and reduced appetite.