They promised the expansion would happen, and they weren't lying. After delivering its platform capabilities to Austria, KfW, the German-based government-sponsored bank, has moved into U.K. territory, vowing to conquer new countries going forward.

The firm's latest transaction is a testament to the benefits of partnering with KfW. Not only has KfW managed to bring its synthetic platform onto U.K. shores, but it has managed to launch the largest public U.K. synthetic. Under the Provide Release 2003-1 securitization, the German bank teamed with U.K Egg Banking plc to transfer the risk on a GBP1.75 billion (US$2.8 billion) pool of prime residential mortgages. To investors' dismay, only GBP42 million (US$67.5 million) of the bonds were sold in the initial round, said sources working on the deal.

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