The whirlwind of RMBS deals bombarding the European market over the past several months may soon start to trickle off, as industry players prepare to close the books on 2003. There are plenty of deals, however, to keep players busy for the next few weeks at least.

According to analysts at Dresdner Kleinwort Wassertein, the RMBS pipeline in particular has dwindled down to a handful of country-specific deals. "Notably the bulk is to come from the U.K. and Spain, although we expect just one U.K. deal," reported analysts.

Market sources report at least three Spanish deals that will enter the pipeline before year's end. From the U.K., subprime lender Southern Pacific Mortgage Ltd. last week began marketing its GBP325 million (US$551 million) Southern Pacific Securities H Plc. It is the mortgage lender's third deal this year and will include the familiar dual tranches of triple-A backed paper, this time enhanced by an MBIA insurance policy. The capital structure will include notes issued in sterling, dollars and euros. CDC IXIS, Lehman Brothers and HVB will co-manage the deal.

The new French RMBS, Loggias 2003-1, also began marketing E434 million (US$507 million) of notes backed by properties owned by employers of the Electricite de France and Gas de France. It offers investors a triple-A tranche with a 7.9-year average life, plus a single-A tranche with a 7.9-year average life. The transaction includes E14 million (US$16.3 million) of unrated notes.

On the ABS side, a number of deals continue to market with a couple of new names circulating last week. New on the calendar is the ABN AMRO-managed PremierTel plc, offering investors GBP300 million (US$508.3 million) of notes backed by rental cash flows due from British Telecommunications plc (BT) for Rotch Property Group. Two classes of fixed rate note are offered under its capital structure and include a GBP81 million (US$137.3 million) 19.5-year, double-A class, and a GBP210 million (US$355.9 million), 22.9-year single-A class. The deal is backed by several of BT's properties that were initially securitized under the Telereal transaction, which priced at the end of 2001.These were subsequently sold, explained one market source.

Further details emerged for NIB Capital Bank NV's E1 billion (US$1.167 billion) RMBS, Provide Orange 2003-1 - the first Dutch transactions to use KfW's Synthetic Provide program. According to market sources, the deal will include a total of E133 million (US$155 million) of notes to support the E867 million (US$1.007 billion) super-senior tranche. The provisional pool is comprised of loans to 6,382 borrowers with 25 months seasoning and an 87.7% weighted average LTV at loan origination, said market sources.

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