Russia and Turkey generated news last week in three different asset classes: mortgages, credit card receivables and diversified payments rights (DPRs).

On the mortgage front, more details have emerged from Russia on an upcoming RMBS from Vneshtorgbank (ASR, 02/13/06). The buzz is that the transaction is taking longer than initially expected, at least by those observers who had glommed on to overly optimistic statements about timing made by the originator. "VTB has had to grow its book," said a source familiar with the transaction. "It's only this year that they have the collateral." Led by HSBC and Barclays Capital, the entire deal is planned at $90 million. The International Finance Corp. is expected to provide a liquidity facility that will help protect against sovereign interference. The structure will also feature an interest rate swap since the bond is expected to be a floater, while the underlying collateral is fixed-rate.

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