Deal of the month: Virgin RMBS

Author: | Published: 22 Feb 2016

The first securitisation to comply with both EU and US rules on risk retention has closed. But it won’t be such plain sailing for others in the family

Virgin Money has closed the first securitisation to comply with both the EU and US's new rules on risk retention. The multi-currency $1.3 billion prime residential mortgage-backed securitisation (RMBS) was issued in US dollars, British pounds and euros.

Fully compliant with both the longstanding EU Capital Requirements Directive (CRD) and previously untested Regulation S and Rule 144A in the US, it provides a template for similar issuances by European originators going forward.

"The main thing with this deal was getting everyone comfortable with new US legislation, which wasn't built with European issuers in mind," says Chris Barratt, partner at Freshfields Bruckhaus Deringer, who advised the arrangers.

The new rules, which have been marred by controversy and industry resistance from the...