Lloyds Banking Group today issued guidance on its Arkle 2012-1 U.K. prime residential mortgage-backed issue, which includes the Arkle program’s first yen-denominated tranche since October 2010.
Six of the seven bonds will be sold to investors—two denominated in dollars, two in sterling, one in euros and one in yen. The final size of the deal has not yet been determined, with market professionals expecting this to emerge once Lloyds has gauged investor demand.
The initial guidance on the yen bond is three-month yen LIBOR plus 125 basis points, in line with the JPY20 billion (US262.7 million) tranche sold in Santander U.K.’s Holmes 2012-1 U.K. RMBS last month (SI, 1/18). Arkle’s last yen-denominated play was almost 18 months ago, when Arkle 2010-2 saw its JPY20 billion bond fetch three-month LIBOR plus 115 bps (SI, 10/19/2010).....