Deutsche Bank has issued a USD1 billion static synthetic collateralized debt obligation, referencing USD958 million of residential mortgage-backed securities. The deal, called Static Residential CDO 2006-A Ltd., is the fourth in a series and provides for pay-as-you go settlement or physical delivery upon a credit event. Rick Michalek, analyst on the deal at Moody's Investors Service in New York, said offering an option for either PAUG or physical settlement is becoming more common as investors get more familiar with the mechanics. Officials at Deutsche Bank did not immediately return phone calls.