Russia sees first RMBS transaction

Vneshtorgbank (VTB), Russia's second largest bank, has launched the country's first residential mortgage-backed securities (RMBS) transaction. The $88.3 million deal, called Russian Mortgage Backed Securities 2006-1, was completed at the end of June and will be settled in mid-July.

The transaction comprises three tranches: $74.2 million of Class A notes, rated A1 by Moody's Investors Service; $10.6 million of Class B notes rated Baa2; and $3.5 million of B2-rated Class C notes, which will be