Having extended the principal repayment for its A1 class, which hit soft maturity last week, the Republic of Italy's SCIP 2 is starting to look like one of global securitization's most tragic comedies, considering how far from course the deal has swayed. According to research from Deutsche Bank Securities last week, residential property disposal payments into the trust for the first three months of the year were 4% of projections. Cumulatively since closing, residential disposal payments are 21% of the plan.

Last week, Reuters reported that the Italian government does not intend to issue a third SCIP series, which would have launched this year, securitizing a some-odd 2 billion portfolio of properties. Other wire services refuted that claim, citing persons in the Italian Treasury who still believe the third series is underway.

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