Commerzbank last week launched the largest ever mortgage-backed transaction to come out of Germany. Called Commerzbank AG, Residence 2000-1, the E2.5 billion ($2.35 billion) synthetic deal is backed by a pool of residential mortgages originated and serviced by Commerzbank. The bank also arranged and managed the transaction.
The underlying pool comprises around 41,500 loans with a value of just over E2.5 billion, with 68% being first ranking mortgages. The weighted average loan-to-value ratio for the collateral is 79%, and there is a fairly even geographical spread throughout Germany. Because the notes are credit linked to the underlying portfolio, the size of the deal was brought up to E2.5 billion.