U.K. RMBS domination of the new issue market continued last week, with the pricing of the giant $7.5 billion (U.S. equivalent) HBOS - the second issue from its Permanent Finance master trust structure. Meanwhile, the pipeline continues to grow with new continental issues.

Italy is still busy, sporting a healthy pipeline; Italian issues that priced last week were quickly replaced by new names. New last week was Maestrale Srl, an Italian lease securitization. The $260 million equivalent transaction, originated by Commercio e Finanza and Leasing e Factora S.p.A., is being led by ABN Amro. The transaction is structured as two senior tranches and one $26.5 million junior tranche. The class A and B notes are currently rated triple-A and single-A, respectively. According to market sources, there is a back-up servicer in place and the credit enhancement levels for the triple-A rated notes are unusually high for an Italian lease transaction.

Also new from the Italian market is a $348.3 million equivalent mortgage-backed securitization issued by Banca Popolare di Cremona S.c.a.r.l (BPC) and Centrobanca (CB), dubbed Sintonia Finance S.r.l. The deal is managed by Salomon Smith Barney and is expected to be launched with a triple-A rated class A tranche and a double-B rated class B tranche. The transaction will securitize Italian residential and commercial mortgage loans originated by BPC and CB. Both are based in the Northern Italian region of Lombardy. An estimated 49% of the portfolio will be originated by BPC and the rest will come from CB.

From Spain is a $1.162 billion securitization of unsecured consumer loans. F.T.A. Consumo Santander 1 was originated by Banco Santander Central Hispano (BSCH). According to Dresdner Kleinwort Wasserstein, BSCH is Spain's biggest bank, and this will be the first transaction originating from the region backed by unsecured loans.

Copyright 2003 Thomson Media Inc. All Rights Reserved.

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