Category: RMBS Secondary markets
Previous Story Next Story
PREMIUM CONTENT
Regular in-depth analysis, in addition to SCI’s usual news stories
To continue, you need to upgrade your subscription to access this article and all Premium content reports.
Existing Subscribers contact The SCI Sales Team
Not yet registered?
The European RMBS market experienced a slow start to the week before a spike in bid-list activity today, which has generated investor interest. Meanwhile, Aire Valley paper has rallied strongly on the back of a statement from the issuer.
"Monday started slowly, with not much client or Street activity happening. We've seen a ramp up today, however, so it has got busier," one RMBS trader says. This ramp up involved the arrival of five bid-lists, which although not large in size - three to four lines each - helped generate activity.
The trader continues: "The bid-lists included some UK non-conforming, as well as off-the-run deals. With off-the-run deals, we have to sit back and wait to see who's interested; it's not clear-cut. A lot of non-conforming lists came out at the beginning of the month, so this week the market seems to have taken down a lot of that risk."
Elsewhere in the sector, Granite triple-A paper is down by 15 cents today from yesterday. "Triple-As opened at 94.05, while triple-Bs currently stand at 59-60 as the bid-offer," the trader confirms. He adds that although the recent rally in Granite paper has provided rich levels, investor interest remains relatively low.
Meanwhile, the Aire Valley programme generated publicity this week as a notice from the issuer revealed that some of the notes in the series were overpaid. "This caused a stir in the market, with people putting bids out for paper on the back of the news. Consequently, it has rallied quite heavily and driven prices up," the trader says.
-