A busy week for Dutch residentail mortgage backed securities (RMBS) saw 1.74 billion ($2.37 billion) of investor placed deals priced at tight levels.
The pick-up in issuance comes as Statistics Netherlands released data showing that Dutch house prices had their first year-over-year rise in five years.
“While small just 0.1% - this nonetheless represents further evidence that the Dutch housing market has stabilized,” wrote Deutsche Bank analysts in a report published today. “National house prices bottomed in June 2013 and stand 2. 3% higher, with widespread increases across all the regions except Groningen.”
Recent deals have priced within levels set by UK RMBS benchmark deals.
On Tuesday, SNS Bank resold 618 million of NHG-guranteed, Dutch RMBS to new investors after it was bought back from original investors following a deal restructure. The triple-A rated notes were sold to investors at 46 basis points over three-month Euribor, according to Deutsche Bank.
Delta Llyod also sold 320 million of triple-A notes; the 10-year notes were privately placed and sold with a coupon of 3.35%.
On Wednesday, Achmea Hypotheekbank sold a total of 807.3 million of triple-A rated notes to a single investor. The two-year, class A1 notes sold at 38 basis points over three-month Euribor and the 5.88-year, class A2 notes sold at 62 basis points over three-month Euribor.
The Dutch RMBS all priced at tighter levels than the most recently UK RMBS, which priced on May 21. The triple-A tranche of that deal, Chestnut Financing 2014, which have a 3.25-year average life, priced at 75 basis points over three-month Libor.
In the chart below from Deutsche Bank illustrates how investor placed issuance in European deals compares with deals retained by issuers.