Guidance came out last week for Northern Rock's Granite master trust deal, which is prepping to price by month-end. Little else was new on the primary front, despite talk over the past few weeks of a building pipeline.

According to market reports, primary market issuance has reached 80 billion (US$94.4 billion) mark, though a large portion of that is attributed to a few massive RMBS issues, such as Granite's $6.5 billion deal in January.

On Northern Rock's current Granite Mortgages 2004-2 - a GBP3.25 billion (US$5.72 billion) prime U.K. RMBS backed deal - the U.S. dollar 0.6-year class A is talked at two to three basis points over Libor, while the1.8-year 1A2 class was talked at five to six basis points.

The euro denominated 4.3-year class 2A was talked at in 15 basis point area, and the sterling denominated, 7.1-year class 3As were talked at 17 basis point area. The levels are tighter than Northern Rock's January issue.

Also part of the large RMBS pipeline, Citigroup Global Markets and Deutsche Bank were preparing investors for Hermes VIII, a large Dutch deal from SNS Bank. SNS Bank is a regular issue in the securitization market but this will mark the eighth deal for the issuer. Roadshows for the deal are expected to commence this week. Also on the Dutch front is Obvion B.V.'s 1 billion

(US$1.18 billion) RMBS deal, Storm 2004-1. It's the second deal for the issue rand follows last December's Storm 2003 issue. The deal will be managed Rabobank and NIB Capital.

From Spain, a 425 million (US$501 million) RMBS deal with TdA-20 Mixto was expected in the week. The deal is backed by loans from Caixa de Balears, Caja Caminos, Caixa de Manlleu and Caja de Ingenieros. "Given the recent lack of issuance and the wholesale tightening of related markets, such as Italian MBS, we expect Dutch paper to price aggressively, despite the number of new issues, and particularly at mezzanine/sub levels," said analysts at ABN AMRO. "This should stimulate the secondary market, which has been generally muted over the past week."

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