It was a busy week for the European new issuance pipeline. Over 10 billion ($12.7 billion) was on offer by week's end, portending an abundant supply that will allow participants to be selective about the assets on offer.

Italy's Banca Popolare di Milano plans to issue a 2.015 billion RMBS, BPM Securitization 2 Srl. The deal will be led by ABN Amro and Citigroup Global Markets. BPM offers fast and slow pay senior notes dated at 1.6- year and 6.7-year average lives. Additionally, double-A and triple-B rated tranches are also marketing. The provisional pool had a 54.7% LTV, 3.0 years seasoning and an 84.9% concentration in Northern Italy.

Underwriters also began work for the 882 million refinancing of Imser Securities. Italian real estate company Beni Stabili said it would exercise its right of early redemption in full of the floating rate notes issued in its 2002 CMBS deal that financed a portfolio of properties leased to Telecom Italia. The early redemption will be conducted through the issuance of new floating rate notes, which will have the same rating as the outstanding notes. The new notes will have a spread and an amortization plan in line with current market conditions and offer eight tranches including 3.5- year and 7.7-year double-A rated notes, also available with a triple-A rating wrapped by Ambac. Lehman Brothers will act as the arranger of the financing.

More Italian consumer paper began marketing via a 1.0 billion transaction for Italian consumer finance company Agos. The Sunrise deal is issued from Agos' new 5.0 billion master trust. The transaction offers 911.0 million of 6.0-year triple-A rated notes, 60.2 million of 8.1-year single-A rated notes and 28.7 million of 9.5-year triple-B rated notes. "Not a true master trust in terms of a fungible-asset revolving trust, but subsequent transactions will be issued from new pools introduced into the structure and are subject to trust-wide triggers," Royal Bank of Scotland analysts explained. Calyon and Bank Caboto are lead managers on the deal.

On the RMBS front, two first loss securitizations of U.K. mortgages were on offer for Northern Rock and Britannia Building Society (see story p.1). Outside of the U.K., a new Dutch deal offering 3.0 billion of notes began marketing for Fortis Bank. Delphinus 2006-I offers 2.8 billion of triple-A rated notes and three junior tranches rated from double-A to triple-B. The provisional pool had a 102.4% LTV and 3.4 years seasoning.

In Spanish RMBS, a fourth deal for Banco Pastor, totaling 925 million, was added to the pipeline. IM Pastor 4 offers 890.8 million of triple-A rated notes with 4.3% of credit enhancement provided by a 0.6% reserve fund and double-A, triple-B and double-B rated notes. The provisional pool had a 64.3% weighted average LTV and 10 months seasoning. All loans had LTVs below 80%; geographically 22.6% were located in Catalonia, 16.0% in Madrid and 14.9% in Galicia. The third Themeleion Greek RMBS for EFG Eurobank has also been announced.

CLOs flood primary pipeline

Marketing is underway for Arran Corporate Loans No.1, a GBP3.5 billion ($6.5 billion) balance sheet fully funded synthetic CLO for the Royal Bank of Scotland. The notes are offered in a choice of dollar, euro or sterling denominations. The senior notes have a 2.9-year average life sized at GBP2.93 billion and will be issued along with five additional tranches rated from double-A to single-B, along with an unrated GBP140 million tranche. The provisional pool references 150 loans with a weighted average double-B rating.

BNP Paribas is marketing its $12 billion synthetic CLO, Globe Liberte V. The provisional pool references 436 assets with a triple-B weighted average rating and concentrations of 48% North America, 25% Continental Europe and 10% U.K. BNP priced its $9 billion Global Liberte IV at the end of May.

A 3.0 billion balance sheet CLO is on offer from Deutsche Bank's London Wall 2006-1. London Wall offers $240 million of funded notes, including two triple-A rated tranches sized at $90 million and $75 million. The pool contained 213 obligations to 179 entities with a triple-B weighted average rating. Geographically, the exposures were located 50.6% in Western Europe and 37.2% in Northern America.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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