Nationwide to issue £3.5Bn of RMBS - 27.10.2009

Author: David Whittaker Posted on: 27 October 2009

There is no indication yet of pre-placement but margins of 150bp over LIBOR rate or SWAP rates are slightly better than the Lloyds deal on 28 September of 170bp. Many hadn't expected a deal to be so quick after the Lloyds deal but it now raises the prospect of one or two smaller deals between now and the end of the year.

Whilst this doesn't immediately change the money supply prospects for 2010 it is yet another sign of slowly improving money supply, especially when the last 7 days saw a disappointing set of Q3 data at -0.4% rather than the expected 0.2% - the lack of reaction from money markets suggest that they expect an upward adjustment when the balance of the hard data (some 60% of the analysis) pool becomes available.

We'll keep you up tp date with the latest developments and buy to let mortgages products as they are released.