The deals that priced over the week were quickly replenished by several new deal announcements made last week. However, the pricing debate is still on and market analysts say they expect to see momentum move in one direction or another.
"Sentiment in U.S. markets appears to be increasingly guarded in light of the housing data in those markets," Royal Bank of Scotland analysts said. "Time will tell if this sentiment turns jitteriness into real weakness and spills over into the European markets. The new HBOS de-linked transaction may offer some clues, but we expect that some participants will use the opportunity of a different vehicle out of the same trust to declare a new issuer, thereby finding potential new capacity in credit lines."
HBOS announced its second U.K. RMBS of the year, which will also be the first issue from a new de-linked master issuer trust, Permanent Master Issuer. The deal will total GBP4.44 billion ($8.27 billion) and is fully registered under Securities and Exchange Commission rules. The structure will include a 2a7 eligible tranche as well as privately placed Canadian dollar-denominated senior tranche.
Dealers also announced FACT-2006, a 600 million ($762.6 million) Austrian auto lease and loan securitization for Porsche Bank. The 13.8-month seasoned pool is backed by 47,713 contracts, 72.0% of which are financial, 14.2% are operational leases and 13.9% loans. Of the pool, Volkswagen models account for 50.2%, Audi 24.5%, Skoda 10.9%, and Porsche 4.7%.
Santander Consumer E.F.C. SA, a unit of Santander Central Hispano, is selling a 1.35 billion securitization of auto loans. UBS is managing the deal. The loan pool is made up of assets from Andalusia, Madrid, Catalonia and the Canary Islands. Pricing is expected this Friday, pending regulatory approval in Spain, as marketing material from the lead manager showed.
Lusitano Mortgages No.5 is the eighth securitization operation and the fifth residential mortgage-backed securitization carried out by BES. It's the second jumbo Portuguese RMBS deal to price in a week following Douro Mortgages No. 2, which was equally well received. The leads tested a tighter level on the Class A tranche but were unsuccessful and consequently priced the tranche at 13 basis points over Euribor. "As we have seen with several other transactions at [triple-A] level, while deals may be two to three times covered at the original talk, investors are showing price resistance that is preventing these tranches printing any tighter," said Dresdner Kleinwort Wasserstein analysts. "As a result the Class A notes tightened immediately on the break and traded one basis point inside reoffer. In terms of the subordinated tranches, Classes B and C met price talk while Class D priced two basis point inside."
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