The European securitization market kicked off the week in a relatively calm fashion following last week's attacks. Sources at The Royal Bank of Scotland said that they had neither seen a retreat or progression into ABS, adding that secondary trading has all but stopped as the industry turned its focus on the remaining primary calendar in anticipation of the August lull.

New to the pipeline this week is the GBP750 million ($1.31 billion) nonconforming RMBS from Merrill Lynch's Mortgages PLC. A total of GBP669.5 million of fast- and slow-pay senior tranches are supported by five subordinated tranches, including a turbo-and a slow-pay double-B rated tranche - neither of which is being offered. It's the seventh deal to come from the Mortgages Plc series, the last transaction, Mortgages No. 6, closed last November. As in the prior securitizations, the assets supporting the notes are nonconforming subprime first-lien residential mortgage loans originated by entities trading under the name of Mortgages PLC and secured on residential properties in England, Wales, Northern Ireland and Scotland.

Work is also underway for a GBP348 million multi-contributor conduit deal from Hypo Real Estate and Morgan Stanley. European Prime Real Estate 1 is backed by a pool that includes eight loans on 18 properties with 279 tenants and a weighted average LTV of 64%. A total of GBP286.9 million ($504.53 million) of 6.1-year A class notes are offered in addition to three subordinated tranches rated double-A, single-A and triple-B.

On the pub front, Wolverhampton & Dudley Breweries plc last week announced a debt refinancing incorporating a new whole business securitization totaling somewhere between GBP530 million and GBP805 million. The transaction will be backed by up to 1,592 pubs from the group's managed and tenanted pub estate. "The final amount issued will depend on the outcome of a process to redeem or exchange the group's existing debentures," said RBS analysts. "The new issue is expected to comprise single-A and triple-B rated debt."

Dresdner Kleinwort Wasserstein, HSBC Securities and UBS released pricing terms for the new Network Rail's sterling denominated deal. The deal, which will have a minimum volume of GBP300 million, is expected to price within the range of 20 to 22 basis points over the 2021 U.K. gilt.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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