The first synthetic consumer loan transaction has sprung out of Italy, furthering the rapidly expanding securitization market. Finconsumo Banca SPA has launched a EURO350 million purely synthetic transaction, not only marking a first for Italy, but one of the very first for the entire European ring.

Paving the way for more deals of the like, Credit Agricole Indosuez SA, investment banker and arranger of the deal, and Finconsumo will act as sub counter parties that will enter into three credit default swaps. The credit default swaps are referenced to a portfolio of consumer loans, originated by Finconsumo. Rather unique to the deal, the portfolio consists of 99,000 assets and the average size of each asset is about E3,500.

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