With few trades to speak of, Europe seems officially to be on summer holiday. The week started with only four transactions publicly marketing for a grand total of 3.2 billion ($3.9 billion) of notes. Sources at The Royal Bank of Scotland reported that new issuance volumes were also light during July at 12.6 billion ($15.5 billion) compared to a monthly average of 22.8 billion during the first half and 21.2 billion last July.

The capital structure was released for Deco 2005-EU1, a 900 million German and Swiss CMBS transaction from Deutsche Bank's conduit. A total of 10 tranches rated from triple-A to a split-rated double-B/triple-B minus are offered with 6.7-year average lives and a fast pay 3.5-year note. The deal includes a 680 million loan backed by the Centro shopping center in Germany alongside a further six loans on 48 properties with a total 1,618 tenants with a 91% German and 9% Switzerland concentration breakdown. Price guidance for the fast-pay A class notes are talked in the 19 basis point area over Euribor and the slow-pay A class is talked in the 26 basis point area over Euribor. Pricing is expected sometime midweek. Market sources report it's likely to be the only deal marketing this week.

Price talk for the Wolverhampton & Dudley Breweries pub transaction tightened for some tranches and pricing was expected by the end of last week. The single-A rated class A1 floating rate notes are still talked at 55 basis points over Libor but the fixed-rate single-A rated A2 class tranche contracted to 78 to 80 basis points, versus initial talk in the 80 basis point area over gilts. The single-A rated fixed-rate A3 tranche was talked at a spread of 83 basis points over gilts, against original guidance in the low 80 basis point area over gilts; and the fixed-rate triple-B B1 notes are currently talked in the 127 to 128 basis point range over gilts, in from the 130 basis point area.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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