Last week got off to a slow start, but dealers promised an uptick in European ABS issuance before month end. Two new deals entered the pipeline, raising the volume of new issues marketing so far this month to 19 billion ($24.6 billion).
European CLOs, slated to see strong volumes in 2007, saw another two deals added to the pipeline. Bear Stearns began showcasing Hudson CLO 1 BV, the 362.5 million European CLO for Aladdin Capital Management. The portfolio comprises euro- and sterling-denominated senior secured loans, mezzanine obligations and second lien loans and is mainly distributed in Europe with the largest geographic concentration in the U.K. Elgin Capital also began marketing its 400 million European CLO, Dalradian III, with Goldman Sachs as a bookrunner. The pool consists of euro-denominated senior and subordinated notes and 100 million variable-funding notes. The deal is expected to price this week.
The second deal from JPMorgan Securities' Great Hall Mortgages was announced, with the underling a mixture of conforming, nonconforming and buy-to-let loans originated by Platform Home Loans. Great Hall Mortgages 2007-1 will offer GBP840 million ($1.64 billion) and has a current LTV of 83.5%, 5.4-month seasoning, with a major geographic concentration in London.
Hypo Real Estate Bank International announced its GBP596.1 million Estate UK-3, a partially funded synthetic U.K. CMBS. The pool consists of 13 loans secured on 110 properties, which are mainly retail office and car show rooms with an average LTV of 59.3%. The deal is expected to price next week.
Banca Italease and Mercantile Leasing began marketing a 1.7 billion lease-backed transaction, Italfinance 2007-1. The deal is backed by 14,625 performing lease contracts and is expected to price next week.
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