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RMBS

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  • Investors in U.K. commercial mortgage-backed securities may file claims that the CMBS are in default, using a principle established by a British court earlier this month involving residential mortgage-backed securities issued by a unit of Lehman Brothers Holdings.
  • Issuers in Europe’s covered bond market are predicting more credit investors to dive into the sector this year, as well as strong, sustained interest from the U.S. buy-side, according to panelists at Information Management Network’s issuer strategy roundtable on covered bonds in London.
  • FIG
    Northern Rock has been trying to play down the significance of its first public post-crisis securitisation, a £1.5bn prime RMBS. The bank was at pains to point out that it was only publically placing 2% of its balance sheet, in the form of an ‘A1’ tranche of 1.99 year average life notes.
  • FIG
    Lloyds released guidance on its Headingley static pool RMBS on Wednesday, with pricing finally expected during Australian hours on Friday — a challenging aspect of being the first UK RMBS to place an Australian dollar tranche.
  • FIG
    JP Morgan is once again buying primary market ABS in size, taking Eu1bn of Aegon’s new Dutch prime deal Saecure 10.
  • MKP Capital, a distressed-debt fund manager, is said to have sold off roughly two-thirds of its portfolio of asset-backed securities last week.
  • The Commercial Real Estate Council has begun lobbying for an exemption to a rule under the Dodd-Frank Act that would require issuers of asset-backed securities to hold 5% of the issue.
  • Lloyds Banking Group is said to be prepping a swift follow-up to its standalone U.K. residential mortgage-backed trade Headingley 2011-1, with a new issuance from its U.K. RMBS master trust, Permanent.
  • Trading activity in the European asset-backed securities secondary markets has remained quiet over the week, though some market professionals forecast a widening of the bid-ask spread on European paper.