RMBS: Issuers turn to MTN funding

Three stalwarts of the European RMBS market have recently established medium-term note programmes, a sign of the cost savings that such shelf issuance can offer. ABN Amro issued a €3.9 billion partial synthetic transaction from its European Mortgage Securities Compartment vehicle, backed by loans to employees or former employees of the bank. And two non-conforming lenders have also established multi-issuance programmes: GMAC RFC has established RMAC Securities with an inaugural £1.2 billion ($2.1 billion) deal and Mortgages plc with its £575 million launch issue. The Mortgages plc platform is called Newgate Funding, and has been arranged by parent Merrill Lynch.