With 52 billion ($65.08 million) in the pike and 19 billion expected to price this week, record volumes are the prediction for October. The European ABS market is starting to see some softer spreads in the secondary front, although new issue books are reportedly still well-subscribed, according to Royal Bank of Scotland analysts,
Lloyds TSB announced its inaugural GBP5.6 billion ($10.5 billion) securitization of U.K. residential mortgages. The deal, backed by mortgages originated by Cheltenham & Gloucester Plc, will be issued from a special purpose vehicle called Arkle. Citigroup, Lehman Brothers and Lloyds are lead managers on the deal.