Lloyds to launch second RMBS deal
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Lloyds Banking Group is planning to launch a second securitisation deal later this week backed by prime residential mortgages originated by Bank of Scotland.
The mortgages backing the Permanent 2010-1 deal will be drawn from the same pool of assets as Lloyds’ last RMBS issue back in September.
At the time the £4bn deal was widely tipped to signal the re-opening of the European securitisation markets that had up until then been effectively closed as investor appetite waned for RMBS deals during the financial crisis.
Following the success of the Lloyds deal Nationwide followed suit one month later by launching its own £3.5bn securitisation deal.
This latest deal from Lloyds is being managed by Lloyds TSB Corporate Markets, Bank of America Merrill Lynch and JP Morgan.
It is split into four tranches and is notable because it is selling assets in pounds, euros, and US dollars.
The issue is expected to be priced and launched later this week and will be settled at some point next week.
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