The sellside is hoping to price a few deals before the August lull, as trading levels are stabilizing in the secondary markets, according to reports. The European calendar continued to build last week, offering investors some variety in RMBS - two new issues from Belgium and Italy began marketing during the week.

ABN AMRO will lead the 962.5 million Diamond Mortgage Finance 2004 N.V. from Krefima, the second public RMBS transaction to be issued since 1999.

The Belgian SPV, Diamond Mortgage Finance 2004, will issue the Class A, B and C pieces of the transaction. The A and B classes were issued to finance the purchase of the mortgage portfolio from the originator, market sources said. The Class C notes will be used to finance the initial reserve fund. The Class A bonds will be purchased by Magritte Finance 2004, a Dutch SPV. To fund the purchase, Magritte will issue one triple-A rated tranche into the capital markets. Another Dutch SPV, Permeke Finance 2004, will purchase the Class B bonds. Permeke will issue three tranches rated - with Moody's Investors Service ratings of A1', Baa2' and Ba2' - to fund its purchase, said analysts at Dresdner Kleinwort Wasserstein.

On the Italian RMBS front, a 864.7 million transaction for Banca Carige is marketing through co-leads CDC IXIS, WestLB and UBS. Argo Mortgage 2 will offer one triple-A rated piece, a double-A piece and a triple-B piece. This is the mortgage lender's second transaction this year.

For investors looking for paper outside of the RMBS arena, a number of transactions are expected to begin roadshowing. Last week, a new pan-European CMBS issue began circulating. Blackstone Group's 515 million transaction Marlin EMC II offers investors notes backed by a pan-European portfolio of commercial leases from Deutsche Bank; 79.6% of the properties were located in Germany, 8.9% in Luxembourg, 4.8% in Spain, 4.4% in Italy and 2.3% in Portugal.

South East Water Limited, the second largest of the 12 water-only companies in England and Wales, was also marketing its whole-business securitization of water revenues.

Market sources anticipate two tranches (one index-linked and one fixed) backed by an Ambac guarantee.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

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