Primary pricing spread edged closer to the tight levels seen this time last year in Europe with issuance volumes almost on par with levels seen a year ago.

A supply of 4.8 billion ($5.7 billion) kicked off last week with 7-year, triple-A rated Dutch RMBS pricing at 12 basis points and 13 basis points for Italian RMBS paper.

Marketing began for Bacchus 2006-1, a 360 million ($430.6 million) leveraged loan CLO for IKB Deutsche Industriebank. The transaction is structured with a six-month ramp up period and a six-year reinvestment period. The portfolio will include senior secured and mezzanine loans rated single-B plus. Guidance for the 8.6-year, triple-A rated notes has been offered at 25 basis points over Euribor. The four subordinated tranches on offer, rated from double-A to double-B, are talked at the 38 basis point area, 60 to 65 basis points, 155 to 160 basis points and 425 to 450 basis points.

Dresdner Bank is selling 2.1 billion ($2.5 billion) of risk via its Promise-K 2006 synthetic SME CLO. About 1.8 billion ($2.15 billion) of the deal is in the form of a single senior credit default swap, which is placed with a single investor who is paid a premium to bear the risk of nonpayment. The funded notes offered total 223.8 million ($267.6 million), including 76.8 million ($91.8 million) of 3.1-year, triple-A rated notes. The reference pool included 1,880 obligors with an average loan size of 1.1 million ($1.3 million). It's the second time the bank will use the German state sponsored bank KfW's Promise SME platform.

U.K. independent finance company The Funding Corp. is marketing a GBP200 million ($349.6 million) securitization of U.K. prime auto and personal loans, Snowdonia Securities 2006-1. The Funding Corp. is one of the largest independent affinity and branded consumer lenders in the U.K. Snowdonia has on offer GBP144 million ($250.7 million) of 1.4-year triple-A rated notes along with three 2.2-year subordinated tranches rated single-A, triple-B and double-B.

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

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