According to Deutsche Bank research, European RMBS issuance volumes rebounded last month with nine new issues totaling 11.9 billion ($14.2 billion) priced at the end of February.

European RMBS issuance year-to-date stands at 21 billion ($25 billion), 40% higher than volumes from this period last year.

Deutsche Bank expects relatively robust growth in European RMBS issuance this year. Analysts said new growth would likely come from several debut issuers, including new U.K. prime and nonconforming lenders.

In the coming weeks, the European RMBS pipeline looks heavy and will include many Spanish and U.K. RMBS. A heavy CMBS forward calendar has also been forecasted by rating agencies.

Dominant themes

The two dominant themes of the new deal pipeline in Europe last week were German CMBS and Spanish RMBS.

Credit Suisse announced preliminary details for its 723 million ($862 million) German CMBS transaction, Titan 2006-1. It's the sixth deal issued from Credit Suisse's conduit. The portfolio includes 10 loans on 56 properties with 214 tenants. The average lease term is 10.5 years and the loans have a 74% LTV.

Dealers circulated guidance on the 1.6 billion ($1.9 billion) German CMBS from Deutsche Bank's CMBS conduit, Deco Pan Europe 2 (Deco 7). The five-year dated triple-A rated notes on offer were talked at the 21 basis point area over Euribor. The 6.7-year notes were talked at the 28 basis point area. The double-A rated notes were talked at the 40 basis point area.

Deco 7 is backed by 10 loans against 449 properties. Pricing is expected early this week.

A Spanish RMBS deal, Bankinter 12, began marketing 1.2 billion ($1.4 billion) of notes. Fast and slow pay triple-A-rated notes are offered in addition to four split-rated subordinated tranches with ratings up to triple-C. A total of 50 million ($59.6 million) of 1.3-year Class A1 notes are offered alongside 1.1 billion ($1.3 billion) of 6.5-year triple-A rated notes.

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

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