Investec has priced the second nonconforming U.K. residential securitization offering for this year.

The privately placed deal called Gemgarto 2012-1 was originally expected to price in November 2011. However, the deal was postponed because of negative market sentiment coming from the sovereign debt situation, according to a weekly securitization market report from Barclays Capital.

The £201.6 million ($322 million), 4.1-year class-A tranche was placed with investors at 295 basis points over the three-month Libor and the remainder of the capital structure was retained.

"We understand the originator is retaining a portion of the senior notes to meet CRD2 requirements, giving flexibility to later place junior notes which are initially also being retained," explained analysts at Standard & Poor's .

This transaction follows the publicly placed deal from Credit Suisse in early March called ALBA 2012-1. This £179.9 million deal has a 3.77-year class-A tranche that priced at 350 basis points over the three-month Libor, according to Barclays.



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