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
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
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...