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  • The non-conforming mortgage sector added to an already crowded ABS market, with both GMAC RFC and WestLB launching deals this week, while Merrill Lynch began marketing the next issue from its Newgate Funding programme.
  • The sluggish Italian CMBS market enjoyed a revival this week with the Italian Treasury's second real estate fund, Patrimonio dello Stato began marketing a Eu398m CMBS, while Lehman Brothers and Morgan Stanley completed roadshows for a Eu1.035bn refinancing of the landmark Imser Securitisation of Telecom Italia properties. That deal is set to price today (Friday).
  • Royal Bank of Scotland this week priced a £343.68m hospital bond for Consort Healthcare, a consortium comprising Balfour Beatty, Royal Bank Project Investments and HSBC Infrastructure Fund Management. The transaction featured a further £55m of variation bonds.
  • Barclays Bank and HSBC have begun marketing the first Russian mortgage securitisation. The deal will raise $84.8m for state owned Vneshtorgbank (VTB).
  • Swiss Re has issued $950m of catastrophe bonds from its newly created Successor repeat issuer platform, providing protection against North Atlantic hurricanes, European windstorms and Californian and Japanese earthquakes. The deals are unique in that they not only provide protection against substantial losses in the case of a catastrophe, but are also aimed at reducing earnings volatility.
  • The ever-expanding world of structured finance this week saw a new asset class come to market, the first managed commodity swap CDO. Everest 1, arranged by Barclays Capital, is just the second commodity swap deal yet, after a static deal closed by Barclays in November 2004, called Apollo. This one differs in that it will be managed by TCW, who can substitute up to 20% of the portfolio each year.
  • Britannia Building Society this week launched the first securitisation of residual risk in the UK non-conforming mortgage sector, drawing high subscription rates and pricing easily inside initial guidance.
  • Pimco is in the final stages of marketing Morro Bay, arranged by UBS. The deal, which will issue notes denominated in dollars, euros and yen, will offer investors exposure to a portfolio of companies with a weighted averaged rating of triple-B. Some 40% of the target portfolio will be US companies.
  • The European ABS market took a trip down memory lane this week when Swiss railcar leasing company Ahaus Alstätter Eisenbahn refinanced its first securitisation of freight rolling stock, which was the first European deal in the asset class, and the first ever securitisation in euros.
  • Highlights of global emerging markets research this week
  • Analysts blame a wobble in the market on global flight from emerging markets, but Garcia’s honeymoon may be short
  • Bear Stearns and Deutsche Bank are in the market with an increased bank line for Insurance Auto Auctions.