Deals continue to populate the European pipeline, promising a busy month ahead of the 2004 global ABS conference in Barcelona.

A number of CDO structures joined the market last week, complementing an already large quiver of MBS deals on roadshow. The start of May will likely see heavy issuance, as investors continue to pile on bids.

HypoVereinsbank is due out later in the week with guidance for Capital Efficiency Group's European Private Funding I (PREPS 2004-1) CLO of loans to German Mittelstand companies. Marketers expect to price PREPS by the end of the week.

Also, investors are being shown a synthetic deal out of Asia, led jointly by JPMorgan Securities and Royal Bank of Scotland. The Axa Credit Bond 2004-1 will be the first in a series of benchmark bonds providing diversified exposure to the Asian credits.

The portfolio will target a triple-B weighted average rating in two different portfolios, with a minimum rating of double-B minus. The notes will be offered in multiple currencies. One-on-one marketing should begin this week. The structure is expected to include two bullet tranches offered with five-year and seven-year maturities.

On the RMBS side, the Spanish UCI 10, a 700 million (US$834 million) offering, was due by mid-week, tightening from the prior week's initial price talk. The class A notes at 4.7 years are being offered at 16 basis point area over Euribor, and the class B notes are offered at 50 basis points.

Spain's major electricity utilities - Endesa, Iberdrola and Union Fenosa - privately placed a 1.3 billion (US$1.5 billion) securitization of tariff deficits. The deal is led by BBVA, Caja Madrid and Merrill Lynch, and was expected to price by the end of April. It's backed by receivables due to the three utilities from 2000 to 2002. The deficits are the result of a gap created between the costs of regulatory-capped electricity rates and wholesale costs. The three companies have a combined deficit of just over 1.3 billion (US$1.5 billion) - Endesa with 658 million (US$783 million), Iberdrola with 518 million (US$617 million) and Union Fenosa with 178 million (US$212 million).

From the U.K., roadshows began last week for West Bromwich Building Society's GBP250 million (US$446 million) Sandweel Commercial Finance 1. The CMBS deal, led by Citigroup Global Markets, will feature GBP205 million (US$366 million) of triple-A notes backed by 176 loans on 203 properties. No hotel or leisure properties are included in the mix and the maximum tenant concentration is 2.7%. The portfolio has a weighted average seasoning of 20 months, a weighted average unindexed LTV of 74.66% and an average loan balance of GBP1.78 million (US$3.18 million). Barclays Capital and Royal Bank of Scotland are co-managers.

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