The April holidays led to less-than-impressive European primary issuance. Year-to-date issuance is up only 4% over the same period last year. According to analysts at the Royal Bank of Scotland, total issuance for April this year was at 13.0 billion ($16.3 billion) compared to 31.8 billion in April 2005. But despite the seemingly slow pace, analysts at Commerzbank reported that the market in 2006 is still on par with last year's. A new wave of Jumbo RMBS deals are set to come to market, which should drive this year's volumes upward.
Standard Life Bank issued guidance on its new GBP1 billion ($1.8 billion) U.K. RMBS issue from its Lothian series. The deal's, Lothian 2006-1, structure offers notes rated from triple-A to double-B including three senior tranches issued in dollar, euro and sterling denominations. The dollar piece dated at 0.8-years is talked between negative two to negative three basis points over Libor, the 4.5-year euro tranche is talked at the nine basis point area over Euribor and the sterling 5.2-year piece is talked between nine and 10 basis points over Libor.