Flows still remain active as the European market enters the thick of summer. Sources say that the pipeline is still relatively full, with new issues replacing deals as they price.

The latest transaction from Provide, the ever-active KfW-sponsored platform, extends outside the typical German-based origination channel. KfW has already extended its service to neighboring Austria. This time, the platform involves U.K.-based Internet bank, Egg Banking plc. The new deal, Provide Release 2003-1, is a £42.25 million (US$68.6 million) synthetic RMBS securitization offered with a £1.7 billion (US$2.7 billion) super senior tranche. The capital structure will also include £22.8 million (US$37 million) in triple-A notes, £11.4 million (US$19 million) in double-A notes and £7.9 million (US$13 million) in single-A notes. The collateral pool consists of 1,537 mortgages with a weighted average LTV of 48.8% and 14 months seasoning. Societe General is managing the deal.

Also emerging on the U.K. front is a new water deal for Southern Water Services ltd. Southern Water will use the funds generated by its £1.8 billion (US$2.9 billion) issue to finance the acquisition facility, First Aqua, which was established by Royal Bank of Scotland (RBS). First Aqua acquired the water company early last year from the Scottish Power Group. The deal, Southern Water Finances, will include six senior tranches, three of which will be wrapped. In addition to this issue, Southern Water is also marketing a £233 million (US$379 million) mezzanine tranche. RBS and Citigroup are acting as joint leads on the deal.

Societe General is also marketing Claris Ltd., a €2 billion (US$2.26 billion) synthetic European CDO of ABS and credit default swaps (CDS).

The capital structure will include €100 million (US$113 million) of notes offered through a credit default swap as well as a €50 million (US$56 million) triple-A piece; a E30 million (US$34 million) double-A piece; and a €20 million (US$22 million) single-A piece.

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