One of the U.K.'s biggest banks and most enthusiastic securitizers, Abbey National, recently launched the biggest ever European mortgage-backed securitization. Called Holmes Financing No.1, the GBP2.2 billion ($3.3 billion) global transaction is backed by first-tier residential mortgages. Schroder Salomon Smith Barney has been brought in to arrange the deal and will act as lead manager and global coordinator, along with 11 other syndicate members.

The deal uses a revolving master trust structure, something which enables multiple transactions to be issued from the same vehicle. The use of the technique, which was originally developed for U.S. credit card deals, was first used for a European mortgage securitization when Salomon arranged the Mound Financing MBS deal for the Bank of Scotland in April.

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