Germany's Landesbank Schleswig-Holstein (LB Kiel) recently made its first venture into the securitization market with a synthetic residential mortgage backed deal, the first such deal from a German Landesbank. The transaction - called FOERDE 2000-1 - totals $1.007 billion ($910 million), made up of a E888 million credit default swap and bonds worth E119.2 million.

German bank WestLB acted as lead manager on the deal, confirming the emergence of German arrangers and issuers as leaders in innovative synthetic securitizations, which offer them the chance to free-up regulatory capital and improve return on equity.

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