Spanish securitization manager Titulizacion de Activos (TDA) issued its eleventh securitization of Spanish mortgages at the end of January, via bookrunners Dresdner Kleinwort Benson, Credit Agricole Indosuez and EBN Banco.

The deal was for a total of E660.6 million and was split into four tranches: a n79.3 piece with an expected average life of one year; a three-year bullet worth n118.9 million; and a n436 million tranche with a expected average life of 6.5 years. All were rated Aaa by Moody's Investors Services. The subordinated tranche, rated A2, totaled n26.4 million.

Pricing was Euribor flat, plus 14, plus 29 and plus 50 respectively.

The mortgages that back the transaction were written by four Spanish savings banks: Caja de Ahorros del Meditarraneo, Caja de Ahorros Terragona, Caja Terrassa and Caja Manresa.

The deal was structured by TDA in Madrid and the paper split between the three bookrunners.

TDA chose Dresdner KB as one of the bookrunners as part of its effort to internationalize the placement of its paper, which until now has largely remained in Spain.

Dresdner ran its syndication efforts from London and placed the two longer dated triple-A-rated tranches in Germany, France, Italy and the Benelux countries, said Michael F. Spitz, syndicate manager for asset-backeds. The one-year piece was placed in Spain and Portugal.

Spitz explained that the longer tranches were most in demand from buy and hold investors without risk weighting worries, as they clamored for yield pick up.

Holders of three-year German pfandbrief, for example - currently traded at Libor plus one to two basis points - would pick up around 12 basis points if they switched to the A2 tranche, Spitz added.

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