Primary market activity remained in the forefront last week with a number of deals pricing and an unrelenting pipeline that promises a busy run-up to summer. Secondary trading continued to be muted by primary volumes. Recent new issues were holding at or inside re-offer on the break, with little being seen on the offer side from the sizable corporate loan deals that have recently priced.

Marketing is underway for Peugeot's French captive leasing division 1.25 billion ($1.56 billion) deal, FCC Auto ABS Compartiment 2006-1. The leases were for new cars to individuals and small businesses. The transaction offers two tranches, including 1.2 billion of triple-A rated notes with a 4.4-year average life and 132 million of single-A rated notes with a 6.2-year average life. This is Peugeot's fourth transaction, its last deal, which was backed by German receivables, priced in February 2004.

Lehman Brothers also has GBP1.0 billion ($1.8 billion) U.K. CMBS conduit transaction Windermere VIII on offer. The deal is marketing three subordinate triple-A rated tranches that include GBP220 million of 2.6-year senior notes, GBP558.5 million of 3.9-year notes and GBP57.5 million of 4.7-year notes along with double-A to double-B rated tranches. The portfolio includes eight loans on 52 properties.

Marketing is underway for Paragon Mortgages No. 12, a GBP1.5 billion U.K. buy-to-let RMBS. The transaction offers 2a7 eligible Class A1 notes totaling $1.5 billion alongside GBP500 million equivalent of 3.3-year triple-A rated notes and 5.0-year double-A and single-A rated notes. Its provisional pool had a 79.8% weighted average LTV and eight months seasoning.

From the Iberian Peninsula, Magellan 4, a 1.5 billion Portuguese RMBS was on offer for Banco Comercial Portugues. Magellan consists of 1.4 billion of 6.2-year triple-A rated notes alongside four tranches rated from double-A to double-B. The most junior notes are repaid from excess spread. The pool had a 76.5% LTV and 2.2 years seasoning. Dealers also began marketing IM FTGENCAT Sabadell 2, a 500 million securitization of lease contracts to SMEs for Banco de Sabadell. It offers two series of triple-A rated notes with 3.7- and 7.4-year average lives, the longer dated series guaranteed by the Region of Catalunya. Its provisional pool included 66.5% real estate leases with a 61.9% LTV.

CLOs continue to flood the market. Last week, marketing began for Eurocredit CDO V, a 600 million leveraged loan CLO for Intermediate Capital Managers. Calyon has its 6.1 billion synthetic balance sheet CLO Daphne II in the primary line-up. The deal offers 396.5 million of funded notes, including 274.5 million of triple-A rated notes. The pool references 244 obligations, including loans, bonds, overdrafts as well as guarantees and the majority of the obligations are to investment grade European entities. Calyon may substitute new reference obligations throughout the life of the transaction, subject to rating tests and concentration limits.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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