The Royal Bank of Scotland priced its £3.6 billion ($5.5 billion) U.K. RMBS transaction called Arran Residential Mortgages Funding 2011-2 plc, which issued tranches denominated in dollars, euro and British pounds.
The deal has been rated 'Aaa' by Moody's Investors Service and 'AAA' by Fitch Ratings. The deal is backed by prime U.K. RMBS originated by Natwest Home Loans and RBS.
RBS will retain some of the notes, while JPMorgan Chase and Citigroup are said to be purchasing the other portions of the bonds, according to a Bloomberg report.
According to a report by Societe Generale, of the dollar denominated tranches, the class A1C, $725 million tranche priced at 135 basis points over the three month Libor; the class A2C, $670 million tranche priced at 160 basis points; the Class A3C, $500 million tranche priced at 175 basis points; the class A4C1, $900 million tranche priced at 180 basis points; the class A4C2, $250 million tranche priced at 182 basis points; the class A4C3, $250 million tranche priced at 185 basis points; the class A4C4, $250 million tranche priced at 177.5 basis points and the class A4C5, $261 million tranche priced at 175 basis points.
Also marketing a dollar denominated notes is Nationwide Building Society's Silverstone Master Trust. The deal, which was announced last week, issued price talk for the U.S. notes with an average life of 2.9 years in the 155 basis points area over the three-month Libor, according to a report from Dow Jones.
Guidance on the sterling notes with a weighted average life of 4.85 years is in the area of 165 basis points over three-month sterling Libor. According to the report the deal is expected to price on Thursday.