With the Italian government gearing up to unleash its second, E6.6 billion securitization of real estate assets, Europe looks set to clear issuance expectations for 2002. Interestingly, the Italian treasury came to market this time last year with a series of securitizations that brought year-end volumes to record levels.
According to market sources, the European calendar now stands at E20 billion, and much of the pipeline that has been building over the past months should come to fruition during November. The Italian treasury transaction, SCIP 2, is expected to come to market in three tranches of note: a E5.3 billion, triple-A tranche; a E856 million, double-A tranche; and a E539 million, single-A rated tranche. The underlying pool will contain a mixture of residential and commercial properties. Sources indicate that the single-A tranche is the largest seen in the market so far this year.