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Fitch completed its review of Portugal's underperforming securitisation of delinquent taxes this week. The rating agency did not downgrade Sagres STC – Explorer 2004 Series 1, but maintained its Rating Watch Negative status.

Italian lease backed paper gathered steam this week on the back of a general market rally as SBS Leasing priced its first securitisation in two years. SBS's deal Lombarda Lease 4, underwritten by BNP Paribas and Calyon, came at 15bp over Euribor for a 4.03 year average life at the triple-A level — assuming a conservative 0% CPR. That offered a pick-up over secondary levels, but came comfortably at the tight end of guidance and oversubscribed.

Prudential M&G will start the equity marketing for Panther 3, a multi-asset class cash transaction, via Merrill Lynch this week. The Eu400m deal will pool 30% leveraged loans, 25% ABS, 20% private placements and the remainder investment grade and high yield bonds. "We hear from investors that they've got a lot of concentration in leveraged loans transactions," said Dagmar Kent Kershaw, head of CDOs at Prudential M&G. "It's difficult to structure pure European ABS transactions in current market conditions, so this offers good diversification and a range of asset classes that CDO investors cannot typically gain access to." The structure of the deal will be similar to the first two Panther transactions and the manager hopes to price before the end of the summer.

The two teams that brought collateralised fund obligations of private equity at the end of last year are set to hit the market again.

The Italian Treasury has begun marketing its latest securitisation of real estate, a Eu1.9bn sale and leaseback of 396 properties occupied by government entities by a closed-ended real estate fund, Fondo Immobiliari Pubblici (FIP).

Caja de Ahorros y Monte de Piedad de Gipuzkoa y San Sebastián, the Basque region bank known as Kutxa, launched a Eu300.7m securitisation of real estate developer loans on Monday, the third in the asset class from Spain. Only the Eu240.6m senior tranche was offered to investors by ACF, CECA and Dresdner Kleinwort Wasserstein.

Market participants had a strange sense of déjà vu this week when Greek Bank EFG Eurobank Ergasias priced the triple-A tranche of its second securitisation of residential mortgages at exactly the same spread it achieved this time last year, despite the rollercoaster ride spreads have experienced in the intervening 12 months.

Banco Pastor capitalised on the rally in triple-A spreads this week when leads BNP Paribas, Calyon and Merrill Lynch priced a Eu1bn securitisation of residential mortgages inside initial talk.

HBOS reinforced the positive tone in the asset backed market this week when it launched a finely structured £4.5bn issue from its Permanent Financing master trust, taking advantage of strong dollar demand and a late rally to close oversubscribed, even after increasing the deal by £1bn. "The timing of this transaction was quite good, because we could see the end of the supply coming in," said Adrian Carr, head of ABS and financial institutions syndicate at CSFB in London. "Investors needing to put cash to work before the summer recess wanted to get involved with the transaction. As a result we managed to print virtually all the tranches at the tight end of the range." After printing at the tight end of guidance on most tranches, the deal went on to tighten substantially after the break.

Merrill Lynch is marketing an innovative collateralised debt obligation of an entirely new asset class with Dekania Capital Management a subsidiary of Cohen Brothers & Co. Dekania Europe CDO I pools European insurance companies' subordinated debt. "People have looked at all sorts of insurance plays," said a rival banker. "This is a nice crossover, in that it's insurance related debt but with no insurance risk involved. It's still fundamentally credit risk."

On Monday the British government acknowledged that it would not be able to persuade the US to join its proposed International Finance Facility to frontload development aid through securitisation.