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,
The sale is the second auction executed by the Dutch State Treasury and another $2.1 billion remains in the ING portfolio.