The euro market crave continues. The latest deal to ride the wave of buyside interest was Kensington Mortgages RMS 17. Kensington was oversubscribed and increased by GBP200 million (US$377 million) to GBP340 million (US$642 million), and priced at the tight end of guidance.
The fast-pay 0.8-year U.S. dollar-denominated tranche came in at 1 basis point over the three-month Libor. The remaining notes offered under the class A2 tranche - available in euro, sterling and U.S. dollars - priced at 27 basis points over Libor, while the M1 priced at 57 basis points.