Deutsche Bank recently launched a jumbo E1.76 billion ($1.7 billion) MBS deal backed by payments on over 23,000 of its own residential mortgages. The transaction, called HAUS 2000-1, is the second in the series, following the launch of HAUS 1998-1 in May 1998.

It was split into four floating rate tranches. The E319.4 million 0.65 year average life senior A1 tranche, rated Aaa/AAA by Moody's Investors Service, Standard & Poor's and Fitch IBCA, priced at 11 basis points over one month Euribor. The spread on the 5.94-year average life E1.35 billion A2 tranche, also rated triple-A, priced at 30 over .

Pricing on the E70.6 million M tranche, rated A1 by Moody's and A by S&P and Fitch, was 65 over. The junior E22.1 million B tranche, rated Baa2 by Moody's and BBB by S&P and Fitch, priced at 130 over

K.V. Prabhakar, head of the ABS syndicate desk at Deutsche, was happy with the way the deal went. "The spreads were very good for a mortgage deal of this size," he said, thanks to the high concentration of first ranking mortgages in the underlying assets - 71%, with a 60% loan-to-value ratio.

He added that the experience of doing the 1998 deal helped with the current transaction. "The fact that it was a repeat issue was a positive influence. It didn't influence pricing to such an extent but its success definitely helped us sell this deal."

He also noted how the market has developed since the last deal in the series. "The investment base has definitely increased as the asset-backed market has grown. Now you are seeing more pension funds, insurance companies and money managers. And the euro has also helped with distribution."

Forty investors bought the triple-A notes. Between 5% and 10% were sold in the U.S., 20% to 25% in Germany and up to 40% were sold to U.K. and Irish investors. The remainder went to other European countries.

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