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GMAC RFC Nederland this week gave an object lesson in the benefits of securitisation, when it raised Eu500m against a portfolio of residential mortgages just over two weeks after Standard & Poor's placed its ultimate parent company's BBB- rating on CreditWatch negative.
"The timing was quite challenging," said Ferdinand Veenman, an official at GMAC RFC Nederland.
"We began marketing just as the news over GM broke, and spreads in the ABS market began to soften, so we are very pleased to have priced the deal in line with guidance and ahead of schedule."
Arranger and bookrunner Citigroup priced the senior tranche in keeping with guidance of 12bp area, albeit at the wide end, offering investors an attractive pick-up over other Dutch triple-A RMBS, which was trading in the 9bp area.
"It was an interesting deal, and a challenging one, given the environment in the broader credit markets, as well as the more specific issues surrounding GMAC," said...