As December lunges into its year-end rally, investors still have plenty of choices left that are looming in the pipeline. At the start of last week, more than 40 deals still remained to be priced. Market players say the supply could cause some year-end softening, particularly given the choice of assets circulating in the market.
"If you look at the type of deals still out there, like the German NPL and several whole business type deals, any widening out on spreads could be more a function of deal type, and not a reflection of investor demand," a market source said.
Price Guidance has been revised on the senior tranches of Deutsche Bank's Deco 11, the GBP444.4 million ($874.19 million) European CMBS. At the triple-A level, the 7.5-year Class A1a notes were talked at the 19 basis point area, the 8.2-year Class A1b tranche was talked at a spread of 22 to 23 basis points, the Class A2 notes at a spread of 24 to 25 basis points, and the double-A rated 8.2-year Class B tranche was talked at 31 to 32 basis points, all wider than the original guidance.
Dealers offered guidance on FCC Nacrea, the 328.05 million ($434.15 million) French CMBS from Natixis' new commercial property vehicle. The triple-A rated 7.3-year Class A tranche was suggested at a spread of 20 to 22 basis points, while the double-A rated Class B notes were pre-placed.
Credico Finance 7, the 477.94 million Italian mixed RMBS/CMBS from 16 co-operative banks, had begun marketing. In the portfolio, 73.85% of the mortgages were granted to individuals and 26.15% to SMEs with a weighted average LTV of 60.65%, 25.89-month seasoning and major geographic concentration in North Italy (70.82%). Dexia and Societe Generale are lead managers on the deal.
Fortis Bank added its 18th series (Isara) off its Astir BV, its European synthetic CDO of high grade ABS, to the pipeline. This transaction references a maximum 1.5 billion portfolio with a double-A plus weighted average rating and a weighted average life of seven years.
Price guidance was released on Colonnade II, the JPMorgan Securities led, partially funded synthetic securitization of mainly European mezzanine structured finance assets. The triple-A rated Class A tranche was talked at the 34 basis points area, the double-A rated Class B notes were talked at the 50 basis point area, the single-A rated Class C tranche was talked at the 80 basis point area, the triple-B- rated Class D notes were talked a the 190 basis point area, and the unrated Class E notes at the 450 basis point area.
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