RMBS was once again the order of the week as the European pipeline continued to build with new deals coming from U.K. and continental issuers alike. There were no signs of market activity abating as issuers rushed to get their deals done before Information Management Network's mid-June Barcelona conference.
Last week, the market showed further indications of demand-led tightening with high subscription multiples and pricing at tight levels. Market sources reported spreads coming in for prime U.K. RMBS on the back of primary issuance, with a less vigorous tightening bias seen in other jurisdictions and asset classes.
Marketing began for the 552.2 million ($701.8 million) Dutch RMBS for GMAC RFC Nederland, E-MAC NL 2006-II. The provisional pool has a 78.3% LTV and three months seasoning. E-MAC is offering 528.0 million of 5.0 year class A notes with four 7.1 year subordinated tranches rated from double-A to double-B.
Guidance was issued for Obvion's 1.5 billion Dutch RMBS, Storm 2006-II. The deal's structure is similar to a transaction the issuer priced last February. The offering guidance on the 200 million of fast-pay 1.1 year dated senior notes is in the three basis points area. The 6.2 year notes are talked at the 11 basis point area. The provisional pool has a 97% LTV and included 68.1% IO loans.
From Spain, issuer Kuxta began marketing on its 750 million Spanish RMBS, AyT Kuxta Hipotecario I. The deal comprises a 700 million 6.3 year triple-A rated notes and 10.6 year single-A and triple-B rated notes. The provisional pool had a 75.2% LTV and 30 months seasoning.
Dealers also began marketing on Rural Hipotecario VIII, a 1.3 billion multi-originator RMBS for 19 Spanish co-operative banks. Fast and slow pay triple-A rated notes are offered with 1.4 year and 6.2 year average lives. The offering includes four 9.5 year subordinated tranches rated single-A to double-C. The last multi-seller deal for Spanish co-operative banks was in November last year when Rural Hipotecario Global 1 came to market.
Details were released for Credit Suisse's latest CMBS conduit deal, Titan 2006-2. The 862 million transaction, expected to launch and price this week, is backed by seven German multifamily loans. Underwriters restarted marketing on Talisman III, a 689.9 million deal from ABN Amro's conduit. The offering is backed by 13 loans secured on French and German retail, logistics, office, mixed and residential properties. A total of 560 million of 3.5-year triple-A rated notes are offered along with five subordinated tranches rated from double-A to single-B. Talisman III was initially marketed late last year sized at 295.9 million.
Preliminary details of a new Italian leasing deal for Fineco Leasing, the 988 million FE-Gold, were released. F-E Gold is the issuer's third leasing securitization, following F-E Blue in 2002 and F-E Green in 2004. Italian leasing has represented a small part of issuance year-to-date; the only transaction priced was a 192 million offering for Banca Italease in February.
On the CDO front
On the CDO side, Axa Investment Manager is prepping its third European CLO via its Adagio vehicle and is expected to come to market along with a number of other deals that are currently ramping up. According to Deutsche Bank analysts, the near-term outlook for European CDO issuance remains solid and dominated by leveraged loan product, with at least ten trades currently visible in the pipeline.
Established managers such as Avoca, Invesco, Alcentra and Mizuho along with newer issuers like Elgin Capital Partners, Halcyon Structured Asset Management and CQS Group are expected to price deals over the coming weeks. Oakhill, an established U.S. manager, is reportedly also expected to tap the European market for the first time.
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