Northern Rock priced its latest Granite deal on the tight end of price talk after having upsized the deal by 50% to GBP6 billion ($10.5 million) early last week. The deal, market sources say, sets a positive tone for the year.

Traders at Dresdner Kleinwort Wasserstein noted that the Class A6, which priced at 10 basis points over the three-month Euribor, was trading several times around 9.5 basis points, and the Class A8, which priced at 12 basis points over three-month Libor, was also trading half a point tighter at around 11.5 basis points. "This should be seen as a very positive signal to the market considering the upsizing and tightening of price talk on the deal, as it demonstrates that the depth and quality of the final book must have been second to none," said traders at the bank.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.