Interesting market rumours about Barclays intending to issue a 3-year UK RMBS at a yield of +150 or so. The most fascinating aspect is the proposed buy-back by Barclay's in 3 years' time. Sounds like a good deal for investors: paper backed by Barclay's at a rate higher than Barclays' own senior debt, in addition to solid AAA mortgage backing.

This might at first sight look expensive for Barclays, but a bit more analysis suggests that the bank is assisting its Gracechurch master trust. I just read a good research piece by Merrill on master trusts, which reminds us that extension risk is a big concern. Showing that refinancing is possible will directly help Gracechurch, and indirectly help Barclays and any other banks which have an overhang of RMBS, by calming the market.

[ add comment ]   |  permalink

---

<<First <Back | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | Next> Last>>

No Footer - Page Generated in 0.0892 seconds | Site Views: 13653