The Dutch State Treasury Agency’s $4.27 billion RMBS sale of non-agency securities from its ING Illiquid Asset Back-up Facility (IABF) portfolio on Thursday was readily absorbed by buyers.
Analysts at Barclays said in a report on Friday that prices closed higher for the week. “We have previously argued that the overall non-agencies supply-demand conditions remain balanced and such sales should have only a limited effect on pricing,” said analysts in the report.
A total of 360 individual securities comprising approximately $4.27 billion were sold. About 75% of the $4.27 billion being auction was absorbed by end investors on the auction day, said Barclays.
According to a Dutch State Treasury press release, all six dealers who were included in the competitive auction process managed to win a portion, although the bulk was awarded to two shops, Barclays and Credit Suisse. Bank of America Merrill Lynch, Citigroup, Goldman Sachs and Morgan Stanley are the other four banks selected by the Dutch State Treasury.
The sale is the second auction executed by the Dutch State Treasury and another $2.1 billion remains in the ING portfolio.