Trading in Europe’s secondary asset-backed securities market has been somewhat muted this week, with prices in Northern Rock’s Granite residential mortgage-backed vehicle —the region’s market bellwether—reportedly remaining settled, traders said.
Midweek prices for AAA-rated Granite bonds have ranged between 95.80 and 95.90, slightly down from the 96 level seen two weeks ago, but roughly in line with levels seen at the start of January. Granite’s BBB prices, meanwhile, are locked at 60.75, largely unchanged since the start of the month (SI, 2/6).
“There have been a couple of trades going on around the BBB level, but it’s not really moved that much in recent weeks,” a London-based RMBS portfolio head at a U.K. investment manager said. He reckoned the lack of volatility in recent days was due to market participants holding still and adopting a “watch and wait” stance over the latest Greek bailout package. Eurozone financial ministers finally agreed a new EUR130 billion ($171.9....