Alliance & Leicester is set to start marketing its second RMBS offering for 2010 from its Fosse Master Trust, according to a Reuters Report.
The deal comes just months after the firm's first RMBS deal issued since the start of the crisis. This previous deal did not have a put option or redemption guaranty back to the sponsoring bank that would protect investors from extension risk, making it the closest the U.K. RMBS sector has come to a "true securitization."
That company's first deal was worth ₤1.4 billion ($2.09 billion).
Alliance & Leicester, which is part of the Santander Group, has mandated Bank Of America Merrill Lynch, Barclays Capital, Citigroup, Royal Bank of Scotland and Santander as the joint lead managers for the newest transaction called Fosse Master Issuer PLC Series 2010-2. The deal is backed by U.K. prime residential mortgages.
The capital structure is expected to have triple-A tranches in sterling, euro and dollar-denominated classes. The deal is set to be price, subject to market conditions, in May. A roadshow is expected before the transaction's pricing date, sthe Reuters report.