The recent joint 4.5 billion ($6.4 billion) Danske Bank and KfW Bankengruppe securitization deal on small and medium enterprises (SMEs) in Europe is a highlight of the growing SME securitization market.

The transaction, made up primarily of Danish SME risk, was arranged solely by Barclays Capital and was launched with the name Prime Bricks 2007-1, under the KfW securitization (Promise) platform. The underlying portfolio contains 14,771 loans with risks from private housing loans also securitized. All loans in the portfolio are mortgage-backed, the average indexed LTV ratio is 47.7% and the maximum concentration is 0.3%, according to a KfW report.

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