The Italian government is slated to explore new ground beyond its recently priced securitization of loans to Italian state and public entities dubbed C.P.G. Societa Di Cartlarizzazione. But the interest shouldn't stop there, say market sources, who predict a surge of interested municipalities turning to ABS as a viable means of funding.
The e800 million ($881 million equivalent) Societa Di Cartlarizzazione securitization priced a $112 million triple-A piece at 18 basis points over the six-month Euribor; a second, $524 million triple-A piece at 37.5 over; an $85.5 million B piece at 100 over; and a $46 million C piece at 150 over. It marks the 11th publicly rated transaction originated by an Italian government entity.