GMAC-RFC tested the European waters last week, pricing its first securitization issue following the downgrade of its parent company by Moody's Investors Service and Standard & Poor's to junk status earlier in the month. Fitch Ratings last week slashed General Motors and GMAC ratings to junk status.

Dealers upsized GMAC-RFC's U.K. RMBS deal, RMAC 2005 NSP-2, from GBP1 billion to GBP1.1 billion ($1.82 billion to $2 billion) based on strong demand. All tranches priced within guidance levels. Tranching consists of three currencies - euro, dollar and sterling - for the 0.86-year and 3.27-year A class, which priced at nine and 22 basis points respectively over Libor, across all currencies. The sterling and euro denominations for the 4.26-year class M tranches - GBP50 million-equivalent of double-A rated notes and GBP47 million-equivalent single-A rated notes - priced at 31 and 50 basis points over Libor. The euro and sterling denominated Class B tranches came in at 80 basis points. Within the pool, 2.45% were buy-to-let, 9.1% right-to-buy, 48.7% self-certified and 14.0% of borrowers had at least one CCJ. The pool also included 36.9% of prime or near-prime loans. The provisional pool had a weighted average 75.3% LTV and four months of seasoning. On the break, the senior A2 tranche was 100.03 bid, said analysts at the Royal Bank of Scotland.

Structural details emerged for E-MAC DE 2005-1, a 300 million ($376 million) debut issue from GMAC-RFC's German mortgage division. Third party Aareal Hypotheken-Management was the mortgage servicer on the deal, similar to GMAC-RFC's Dutch and U.K. RMBS programs. The provisional pool had a 98% weighted average LTMV and seven months seasoning. The E-MAC DE 2005-I transaction is structured as a true-sale RMBS. This is the first German RMBS transaction with GMAC-RFC Bank as originator and the first publicly rated German true-sale RMBS transaction to be securitized since 2000.

HBOs is expected to raise GBP3.5 billion in a multi-currency offering, available in U.S. dollars, euros and pounds. The deal is expected to begin marketing in the beginning of June. Citigroup Global Markets and Credit Suisse First Boston are the joint lead managers for the bond sale via HBOs' Permanent master trust.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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