The ABS primary market got back on track this week. Issuers are queuing up to test the bid for seniors with Santander, BMW, RCI Banque and Mediobanca all finding success.
Santander also tested the mezz bid, with success. Meanwhile, Waterfall Asset Management also saw enough to be positive about and returned to reoffer the mezz from SBOLT 2025-1, retained shortly before Easter.
And there are early signs of a broader range of collateral beginning to emerge, after UK mortgage specialist Paratus put a mixed owner occupied and buy-to-let RMBS on offer on Tuesday.
It’s an interesting market for issuers to play. Some GlobalCapital sources even veered away from the classical syndicate banker hymn sheet and saw the merits in waiting.
Indeed, the first issuers back out are facing price uncertainty and will probably pave the way for latecomers to move tighter.
But Another Fine Mezz podcasters, George Smith and Oliver West, urged issuers to act. As Olly says, trying to time the market is a “fool’s game”. The lesson and 2022 and 2023, surely, is take your chances while you can.
Also back on track are the borrowers in Balbec’s Spanish RMBS. George and Olly delve into in the rare reperforming deal — which we deem to be one of the most interesting public markets trades of the year so far.