European market maturity may mean more repeat transactions with less innovative structuring, but investors always have room and appetite for first-timers. Bayerische Landesbank last week closed its novel German mail-order receivables structure with positive investor feedback, said a source at the bank.

The structure is the first publicly rated securitization of mail-order receivables in Europe - this asset class is typically funded via ABCP programs. Stefan Leipold at Bayerische Landesbank said that there were two main points that set the structure apart from other securitization transactions. For one, the mail-order receivables under the Zorro structure are not sold directly by the issuer; instead the issuer purchases the receivables from Quelle GmbH or GmbH - two of the major mail-order companies in Germany. The asset backing the notes is a certificate of indebtedness (CB-note), which will be issued by these mail-order companies and purchased by the issuer under Zorro No. 1 Finance. The CB-note, in turn, will be secured by the mail-order receivables that were bought by the issuer.

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