Morgan Stanley announces Irish RPL deal for Ellington as Lone Star book as Pepper euro tranche prices

Morgan Stanley is marketing an Irish reperforming RMBS called Jepson Residential 2019-1 for Ellington, backed by the portfolio securitized in European Residential Loan Securitization 2017-PL1, sponsored by Lone Star. If the majority equity holder does not exercise the right to purchase the mortgage portfolio on the first optional redemption date, or on the two subsequent interest payment dates, the trustee will initiate a bidding process between the current holders of at least 5% of the Z1 notes Morgan Stanley, which managed Lone Star’s securitization of the same portfolio two years ago, and advised on the sale of the book, is sole arranger. An investor looking at the deal said that it was good the portfolio was moving from one securitization to another, with euro-denominated RMBS supply very limited so far in 2019, restricted partly by the provisions of the new Securitization Regulation, including on Simple Transparent and Standardised (STS) securitization.