CLOs continue filling the European new issue pipeline - a trend that industry players say is likely to continue until year-end.

La Caixa is working on a 656.5 million ($787.4 million) CLO backed by SME loans. Dubbed Foncaixa FTGENCAT 3, the deal offers a 175.7 million tranche alongside 449.3 million of notes guaranteed by the Spanish region of Catalunya.

HSH Nordbank is prepping a CLO of subordinated loans made to Scandinavian banks. Mare Baltic PCC Ltd 2005-1 is backed by 294 million of subordinated loans made to predominantly Danish banks. The pool was geographically split 83% to Denmark, 8.9% to Iceland, 6.2% to Norway and 1.8% Sweden. A total of 201.6 million of A class notes, rated Aa2' by Moody's Investors Service, are available. Two subordinated tranches denominated in Danish krone, all with five-year average lives will also be on offer. The pool includes a small - 14 million - proportion of tax benefits due, alongside 280 million of loans.

Dealers also began work for Pharma Finance 2, a 137 million deal for Comifin SpA, backed by lease receivables payable by Italian pharmacies. The portfolio includes 1,885 leases to 1,441 obligors with 1.4 years of weighted average seasoning. The receivables were split between equipment (44.9%), loans (31.3%), real estate (19.6%), nautical (3.2%) and autos (1.1%).

On the RMBS front a new U.K. subprime mortgage deal, backed by loans originated by Preferred Mortgages and Platform Funding, began marketing. ALBA 2005-1 is a GBP301 million ($533 million) nonconforming RMBS from Oakwood Homeloans Ltd. The portfolio includes GBP200 million of near-prime mortgages originated by Preferred Mortgages and GBP101 million of buy-to-let loans originated by Platform Funding. On offer are 0.9-, two- and 5.1-year triple-A rated tranches. The two-year notes were pre-placed and the 5.1-year tranche is backed by a CIFG wrap.

Dealers began marketing Dutch MBS XIV, a 1.5 billion deal for NIB Capital. A total of 1.4 billion of 4.9-year A class notes were offered alongside four subordinated tranches rated double-A to double-B. The provisional pool included loans to 10,215 borrowers with an 80.1% weighted average LTV and 28 months of seasoning. Geographically 21.1% were located in Zuid Holland, 17.9% in Noord Holland, 16.6% in Noord Brabant and 10.1% in Gelderland.

The pipeline also continues to fill on the CMBS side. Last week Bank of Scotland announced its GBP1 billion Prominent CMBS Funding No. 1 U.K. CMBS deal backed by a mixture of office, retail and mixed-use properties. The deal is offered with a five-year substitution period for approximately one-third of the initial portfolio. It has senior/

subordinated credit enhancement that may switch after three years to pro-rata, depending on credit performance. A euro denominated five-year senior tranche, sized at 589 million, is offered in addition to GBP400 million of 6.7-year senior notes supported by four junior tranches.

The capital structure for Eurohypo's sixth deal from its Opera Finance CMBS program was also being offered. Opera Finance is offering investors GBP470 million of notes backed by four business parks owned by MPEC Limited. All four public tranches are expected to have a 6.7-year average life and are secured by a single, cross-collateralized loan. The structure will not amortize until maturity (subject to triggers). The triple-A rated senior notes have a 50.1% LTV.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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