With more deals lining up, 2005 is as busy as ever and is set to be another record year for the European securitization market. Market focus remains firmly on new issue activity. Little prospect for competing corporate debt issuance is holding a firm bid for ABS product, with many investors long cash.

Among the new deals marketing this week was Windmere VI, the second deal to come from this series this year. The deal offers GBP704.3 million ($1.2 billion) of notes backed by U.K. commercial properties and follows a trail of CMBS that has saturated the market in recent weeks. Lehman Brothers' Windmere transaction is secured by 10 loans on 20 U.K. properties, including two properties in the Canary Wharf estate. The provisional pool had a 78.2% weighted average LTV and 57% to 38% office-to-retail concentrations. Morgan Stanley represented the largest tenant within the pool, at 15% of passing rent. The structure uses a modified pro-rata pay-down structure until the pool base reaches 50%, at which time payments become sequential. Nearly 70% of the securitized loan balance has additional debt in the form of B notes.

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