A large number of industry participants will be headed to Spain next week but the pipeline is sure to keep most in working order. By mid-week, bid lists totaled approximately 1.5 billion ($1.8 billion) and all bonds' levels reflected improved market conditions, said analysts at the Royal Bank of Scotland. One exception was E-MAC, which continues to require a General Motors Corp. spread premium.

HBOS' Permanent Financing No.8 was upsized from GBP3.5 billion to GBP4.56 billion ($6.36 billion to $8.29 billion) this week and priced at the slightly tightened guidance with discount margins in secondary trading on the break, even tighter for the euro and sterling denominated notes, said analysts at RBS. Citigroup Global Markets, Credit Suisse First Boston and UBS were the lead managers. The 5.3-year, euro denominated triple-A notes came in at 13 basis points over Euribor and the 6.5-year sterling A class priced at 15 basis points; while the dollar denominated one-year triple-A notes came at one basis point under Libor. The three-year notes priced at seven basis points and the 4.8-year tranche priced at 12 basis points. The increased size resulted in a further GBP500 million ($909 million) pre-placed tranche, with the remainder allocated across all three dollar denominated series.

Marketing is underway for the first European credit card ABS deal of the year. Gracechurch 8, a $1.5 billion credit card-backed deal for Barclay-card offered U.S. dollar-denominated exposure to U.K. credit card receivables. Grace-church priced $1.35 billion of Class A notes with both fixed and floating rate notes at one basis point over Libor, for three-year notes.

A tap issue off Manchester shopping centre securitization Trafford Centre Finance, placed via RBS, is currently in the pipeline. The existing Class A1 and Class D1 notes, with GBP44.1 million and GBP40.5 million outstanding respectively, are expected to be called at par on July 28th. "A tap issue was anticipated once the recent rent reviews were completed and the new John Lewis store opened on 31 May; therefore, the tap issue was substantially priced into current outstanding bond prices and this announcement is unlikely to adversely affect spreads," explained analysts at RBS.

Elsewhere, dealers began marketing a new 800 million Bancaja 2 Spanish RMBS. Provisional pool contains 8669 first-lien mortgages, 89% of which are residential, with a 65.8% current LTV and 13 months of seasoning. Lombarda Lease Finance 4, the 1.2 billion Italian lease receivables transaction for Banca Lombarda Group, was expected to launch and price late last week. The 4.03-year Class A1 notes are expected to price at 15 basis points over Euribor and the 5.7-year single-A rated Class B tranche is expected at a spread of 30 basis points over. The 6.1-year triple-B rated Class C is expected at a spread of 55 basis points over Euribor.

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

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