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RMBS

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  • Yorkshire Building Society priced the tightest UK RMBS since the financial crisis on Friday afternoon. Heavy oversubscription pushed leads to tighten pricing on Brass No.2 and increase the deal size, as ABS bankers pointed to a lack of UK supply.
  • Investec Capital Markets has priced its non-conforming U.K. residential mortgage-backed trade, Residential Mortgage Securities 26.
  • SNS Bank’s EUR960 million ($1.24 billion) Holland Mortgage Back Series (HERMES) XVIII Dutch residential mortgage securitization includes a rare preplaced fixed-rate tranche aimed at testing market appetite.
  • Certain European securitization trades could be edging a step closer to seeing non-AAA rated senior tranches in deals—as achieving AAA ratings remains tough for issuers.
  • Yorkshire Building Society’s Brass No.2 RMBS is set to be the tightest UK RMBS since the financial crisis. The fall in absolute yields of new issues over the past two months could force RMBS back into more borrowers’ plans — though the buy-side is already lamenting the loss of absolute value.
  • The Dutch RMBS pipeline grew further on Thursday, as NIBC announced a new issue from its Dutch MBS shelf, joining SNS Bank in preparing primary issuance.
  • Angel Oak Capital Advisors, an Atlanta-based investment and advisory company, has launched a fund specializing primarily in private label legacy mortgage-backed securities and also commercial mortgage-backed securities.
  • Secondary market activity in European securitization continues to be dominated by bids-wanted-in-competition, with several lists emerging midweek from hedge funds looking to lighten up books and take some profit.
  • After toying with the idea of structuring a swap-free deal, SNS Bank’s new Hermes RMBS not only includes a swap but it has also been structured with a fixed rate ‘A3’ tranche designed to ensure investors are fully paid before the bonds are called.