Several new deals began marketing last week and as market players turned their attention to the new-issue pipeline, secondary trading activity remained light.

From the Netherlands, a new RMBS deal began marketing via issuer Delta Lloyd NV. Through its Arena 2006-1, Delta Lloyd is looking to sell up to 1 billion ($1.2 billion) of notes. The transaction's total value depended on investor appetite for the pre-funding imbedded in the transaction, which was suggested between 300 ($362) and 600 million ($724 million). The current 400 million ($482.6 million) provisional portfolio includes 3,107 loans backed by 3,362 properties, with an average LTV of 107.5%. The transaction will be structured with up to 925 million ($1.1 billion) of triple-A rated 5.7-year Class A notes and 7.0-year support tranches.

France has a 323.3 million ($390.2 million) RMBS deal marketing. FCC Minotaure Compartiment 2004-1, issued by Electricite de France (EDF), is offering investors notes with high coupons that will be reoffered at a premium price. The loans are partly subsidized and only include the loan portions due to EDF, which are discounted by 12.0% to provide sufficient yield to cover the note interest and create excess spread. The deal had a total of 309.7 million ($73.8 million) of triple-A rated notes offered with a coupon of 35 basis points over Euribor. These notes will be reoffered at a discount margin in the 20 basis points area.

On the U.K. front, Mortgages PLC released the preliminary structure for its GBP600 million ($1.04 billion) nonconforming RMBS transaction, Newgate Funding 2006-1. The deal offered three triple-A rated tranches, with 1.0-, 2.0- and 4.2-year average lives. The shorter dated tranches were offered in both sterling and euro denominations and the 4.2-year tranche is offered only in sterling. The transaction's seven subordinated tranches were offered rated down to double-B, including two tranches supported by excess spread. The provisional pool included 40% near prime and near prime plus collateral.

This deal was structured differently from previous Mortgages PLC transactions as it includes a discount cash reserve fund to finance loans within the portfolio that pay a discounted rate of interest for the first six quarters, explained analysts at the Royal Bank of Scotland.

GMAC-RFC upsized its RMAC 2006-NS1 to GBP1.2 billion ($2.09 billion) from GBP1.0 billion ($1.74 billion) using pre-funding, and tightened price guidance. The Class M1 notes were revised with talk between 25 to 27 basis points over Libor, from 27 to 29 basis points. The M2 tranche was revised with talk from 47 to 49 basis points from the 50 basis point area and the B1 notes are now being talked between 86 to 88 basis points from 80 basis points. The collateral had a 76.8% LTV.

Elsewhere, Spain had a new RMBS transaction in the market. The deal had 1.5 billion ($1.8 billion) of exposure to Spanish residential mortgages from Caja de Ahorros y Pensiones de Barcelona. FonCaixa Hipotecario 9 is backed by a provisional pool with 30 months seasoning with a maximum 73.1% LTV. The triple-A rated tranche was sized at 1.46 billion ($1.7 billion) supported by 29.2 million ($35.2 million) of single-A notes and 7.6 million ($9.17 million) of triple-B rated notes.

A new CMBS deal from Societe Generale's White Tower conduit also began marketing last week. White Tower 2006-1 will have GBP535 million ($934 million) circulating. The collateral comprises three loans on three prime London properties occupied by Aviva, JP Morgan Securities and SBCI. The notes have 4.5-year average lives, and included GBP281 million ($490 million) of triple-A rated notes, an GBP80.3 million ($140.2 million) split-rated Moody's Investors Service Aa3' and Standard & Poor's AAA' tranche. The structure also includes GBP72.0 million ($125.7 million) of double-A rated notes and GBP101.8 million ($177.8 million) of triple-B rated notes.

On the CLO front, a new 300 million ($362 million) leveraged loan deal for Elgin Capital Partners also began marketing. Dalradian Euro CLO I has 197 million ($237 million) of 9.6-year triple-A rated notes on offer, along with four subordinated tranches rated from double-A to double-B.

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

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