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.