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RMBS

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  • A weekly roundup of securitization sectors with year-to-date totals in ABS, CMBS, RMBS and CLOs in the U.S. and Europe.
  • 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.
  • Permanent TSB has seen a high take-up for bonds in its Fastnet 2 Irish residential mortgage securitization tender offer.
  • Pricing on U.K. lender Paragon’s comeback buy-to-let residential mortgage-backed trade Paragon Mortgages No. 17 is imminent, with both the class A senior tranche and the lower-rated class Bs and Cs due to be sold to investors.
  • As part of a long term shift in its funding strategy, France’s Crédit Foncier is to start issuing RMBS alongside covered bonds. It is set to begin with a private placement, which may be issued in the coming weeks.
  • Paragon’s is set to price its latest RMBS around 100bp inside where the buy to let lender sold its last transaction. But it is still offering a decent pick-up to prime UK RMBS, bankers say.
  • The latest residential mortgage-backed securities deal from Mill Valley, Calif.-based Redwood Trust is said to have been initiated off the back of reverse inquiry, according to investors looking at the $320.34 million deal.
  • As the European market enters the home stretch of 2012, London-based officials are confident annual issuance in the region can come within touching distance of last year’s total—despite concerns over a future squeeze on U.K. residential mortgage-backed issuance from the Bank of England’s Funding for Lending Scheme.
  • Standard & Poor's has slashed ratings in 87 Spanish securitizations following its downgrade of the country's sovereign rating on Wednesday.