Liquidation in the pipeline

摘要

Traders again reported strong covers from BWICs last week, although the flow of paper was interrupted by holidays. The hunt for yield in mezzanine tranches resulted in bonds trading tighter than price talk. One bid with a Spanish and a Greek tranche traded particularly well last Tuesday, as Class C tranches of UCI 14 C and Themelion 3 C covered in the very high 60 cash price. They were sized at €7.3m and €3.5m, respectively. The list contained more senior pieces too, including a €24.2m slice of Italian RMBS Sestante 4 A1 covering in the 90 area. One ticket that did not trade was a €32.9m slice of im prestamos fondos cedulas fta 1a, with a current factor of 0.29. Bids did not hit the reserve level of 90.