The European ABS market is seeing approximately 3.5 billion (US$3.9 billion) of new issues enter market this month, with yet another busy week ahead. On the agenda is the £137 million (US$219.8 million) funded CDO of ABS STERLINGMAX I, marketing a structure backed completely by U.K. MBS including RMBS, CMBS and subprime mortgages. West Hyp is the collateral advisor on the deal and CIBC World Markets is lead manager.
ING Belgiumis also marketing a 1.5 billion (US$1.6 billion) synthetic balance sheet CDO that's backed by a portfolio of loans, letters of credits and guarantees offered to medium and large European corporates. A total of 119 million (US$133.7 million) of notes that range from double-A, single-A and double-B notes are anticipated to be sold.
This week another Spanish RMBS deal from repeat issuer Bankiter will offer 1.35 billion (US$1.5 billion) of prime Spanish RMBS. 1.2 billion (US$1.34 billion) of triple-A notes are included along with a smaller single-A piece and triple-B piece. Credit Agricole Indosuez and Deutsche Bank are co-managing the deal. A 277 million (US$311 million) Italian mixed MBS, dubbed Credico Finance 2, will be led by Societe Generale and backed by collateral from nine banks under the Iccrea network.
On the U.K. front, a new RMBS under the Paragon Mortgage series began marketing. Though this is the sixth deal under the series backed by buy-to-let mortgages, it’s the first issued since Paragon's acquisition of non-conforming mortgage lender Britannic Money earlier this year. The structure, however, does not include loans from Britannic Money.