As the EURO261.2 million Cabral transaction, the first CDO to include Portuguese assets, is expected to price this week, the spotlight is turning on the securitization market in Portugal. The adoption of a securitization law in 1999 was followed by a disappointing year in 2000, but expectations are high for 2001.

The Cabral transaction, arranged by Credit Suisse First Boston, represents a securitization of a static pool of mainly Euro bonds and Portuguese bonds. The transaction is carved into two portions, with EURO219 million rated triple-A by Moody's Investors Service and Fitch. Price talk on the triple-A part is three-month Libor plus 45bp-49bp. The deal is expected to price at the end of the range.

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