There was no barrage of European issuance last week but the market did price a few transactions. On the list of firsts for Europe was the EURO198.95 million (U.S.$178.6 million) Real Value One transaction, managed by WestLB.

This was the first global synthetic CMBS issued in the European market that includes U.S. assets. With very little difference in structure to other synthetic CMBS transactions, the main difference is founded on the reference collateral, which includes 45 loans originated by Westdeutsche ImmobilienBank. The loans are secured on 39 properties in Canada, France, Germany, U.S.A., United Kingdom, Spain and Hungary.

The triple-A rated notes priced at 55 basis points over the three-month Euribor; the double-A rated piece priced at 75 basis points; the single-A notes priced at 110 basis points; the triple-B notes priced at 210 basis points; and an unrated Class D2 and Class E tranche priced at 350 basis points and 65 basis points, respectively.

On a whole the deal priced wider than synthetic CMBS structures from last year, said sources. According to Dresdner Kleinwort Wasserstein, the triple-A notes priced 13 basis points wider that last year's pan-European synthetic Europa 2 and priced its tranches 25 basis points wider than its equivalent in the pan European issue, Global Hotel One.

Nonetheless, say analysts at Fitch, the inquiries regarding pan-European assets have been growing. The agency said it is currently working on a few and such appetite can easily translate to synthetic structures that include pan-European and U.S. assets in the mix. But the demand is likely to be generated by German entities, which collateralize these deals with pfandbriefe paper and have done more lending in the U.S.

As for the ratings approach, analysts said that including global reference collateral simply required fusing the European analysis with the U.S. analysis conducted by their team in the U.S. and required very little alteration.

Portugal priced both of its consumer loan and lease securitizations as part of last week's business. The Lustiano Finance No.2 Plc, managed by BNP Paribas and Espirito Santo Investment, priced its Class A tranche one basis point below price talk at 27 basis points. The class B notes priced at 45 basis points and the class C notes priced at 83 basis points.

Atlantese Finance No.2 also priced its Class A notes below price talk, at 34 basis points; the Class B notes priced at 80 basis points and the Class C notes priced at 150 basis points

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