The European market is bustling with action. Barclays priced its GBP5 billion ($8.6 billion) U.K. SME CLO Lambada Financing last Tuesday and on Wednesday had another GBP4.5 billion in the pipeline via its Gracechurch U.K. RMBS deal.
On Tuesday the bank sold its GBP5 billion bond, shifting to end investors the risk tied to loans the bank made to small and medium sized U.K. companies. Lambada Financing offered notes in euros, sterling and dollars and priced in line with guidance. According to Moody's Investors Service, the deal securitizes 775 loans made in sterling to 577 companies in Britain, employing a credit default swap to transfer the exposure to the loans to the bond issuer, while the loans actually remain on the bank's balance sheet. The bank announced on Wednesday yet another balance sheet cleansing deal - the GBP4.5 billion RMBS deal dubbed Grace Church Mortgage Funding.