Nationwide setting up RMBS deal from trust
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Nationwide Building Society is introducing a prime residential mortgage-backed securitisation from its Silverstone Master Trust funding vehicle.
The society plans to finalise pricing and set up the transaction in mid-October, subject to market conditions.
It is expected to offer AAA-rated notes in three and fiveyear maturities.
Nationwide has appointed Bank of America Merrill Lynch, Barclays Capital, JP Morgan and UBS Investment Bank as joint lead managers for the issue, which will contain only UK prime residential deals.
The transaction, called Silverstone Master Issuer plc Series 2011-1, will be the third public issue from Silverstone.
The first deal was issued in October 2009 worth £1.5bn. In October 2010, Nationwide issued a euro and a US dollar tranche worth €1.2bn and $850m respectively.
In May, Santander launched a £3.75bn issue followed by a £2.5bn issue last month. Lloyds Banking Group offered a £3.3bn issue in July.
John Charcol senior technical manager Ray Boulger says: “With the market as it is at the moment, it is only the strongest lenders who will have a chance of getting an RMBS away at acceptable terms.”
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