Valencia Hipotecario 3 FtdA

Almost one year after their last visit to the securitisation market, Banco de Valencia re-appears
with the same leadmanager/arranger team of Bancaja and Deutsche Bank. Both earlier transactions
have performed well, ( docs available on EuroABS ) which obviously bodes well for this issue.

The underlaying collateral initially consists of 10,432 residential loans, of which 83% are for
owner-occupiers. Average seasoning is close to 2yrs, with an average balance of Eur94,378.
All loans are at floating interest rates, and the original LTV is 68.58%. Although the transaction
lacks geographical diversity, (Valencia 67%) the positive sentiment garned from the earlier deals
should offset most concerns.

The deal priced at the wider end of its +2-3/14a/30a/50a guidance. The fast-pay tranche brings
average AAA cost down to +13.75bps for a 5.75yr term, which is only marginally wider than the
+13.64 (5.25yrs) and +13.25 (5yrs) for CAM-7 and Ibercaja-4.


Compare/contrast: Valencia 2, CAM 7, Ibercaja 4.