The Portuguese market was awakened by the Chaves Funding 2, a 230 million consumer-loan receivables securitization launched for the Banco Porugues Negocies. The deal is lead-managed by CSFB and Dresdner Kleinwort Wasserstein.

The transaction was divided into a 207.5 million Class A, double-A-rated tranche; a 11.4 million Class B, single-A-rated tranche and a 11.4 million Class C, triple-B-rated tranche.

The final pool consists of 28,540 claims with an outstanding principal of 230,300,000. The loans are fixed - and floating-rate fixed-term loans. The portfolio is sub-divided into pools of unsecured consumer loans, long-term rental contracts, and vehicle and equipment leasing contracts.

Credit enhancement for the Class A notes equals approximately 20% and is comprised of the 5% subordination of the Class B notes, the 5% subordination of the Class C notes, and a reserve fund of 8% of the initial pool balance increasing to 10% during the first six months of the transaction.

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