SAGRES (Douro Mortgages No.2)

The second RMBS transaction to has originated from Banco BPI of Portugal,
although the third public securitisation from them (see Sagres Douro SME ).
The bank,Portugal's 4th largest is currently facing a hostile bid from
Millenium BCP , and it's unclear how two of the major shareholders may jump
(La Caixa 18.7% , Banco Itau 16.1%)

A little like London buses, after investors not having had an opportunity
to buy Portugese RMBS issuance since the last Douro transaction in Nov 2005,
now two transactions arrive at the same time, with Lusitano 5 also being actively
marketed.

The fast-paying AAA tranche has been launched at +5bps,(dominated by French
Money-market accounts) with the slower-paying AAA tranche printing at +14bps.