Banca Commericale Italiana (BCI) launched its second securitization on on December 5. Once again the transaction was a synthetic. The deal allows BCI to free-up regulatory capital and internal limits associated with certain exposures.

The previous synthetic Scala 1 was done in November 1999 and it securitized BCI's corporate loan portfolio. This time the collateral pool was different. In Scala Synthetic 2 Limited (SCALA 2), BCI bought credit protection through credit default swaps on a EURO750m portfolio of credit default swaps of investment grade obligors in North America, Western Europe and Australia. The obligors are all rated by Standard & Poor's and/or Moody's.

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