Pepper Group's optimum credit sold the third UK second-lien RMBS issue from its Castell programme on Thursday. Lead-managed by Citigroup and NatWest Markets, castell 2019-1 issued six tranches of rated notes linked to Sonia, topped by a £196.592m 1.72-year Triple A tranche. The bond came 1.6 times covered at 128bp over Sonia, from 130bp area IPTs. The first Castell RMBS in 2017 sold its seniors at Libor plus 95bp, and the second deal at 114bp in October last year. Given an approximately 15bp basis between Sonia and Libor, the Sonia plus 128bp print is in line with the Libor spread last year.
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