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UK non-conforming mortgage lender Kensington Mortgage Co returned to the asset backed markets this week with a £150m deal lead managed by Morgan Stanley Dean Witter. Residential Mortgage Securities No 5 followed the innovative template Kensington established in June last year with RMS 4, by creating separate, tradable securities from every scrap of cashflow in the structure.

* European Investment Bank Rating: Aaa/AAA

* Three Spanish savings banks this week launched a Eu351.5m (Pta58.5bn) mortgage securitisation -- Spain's first in the single currency. Seville based Caja de Ahorros El Monte, Catalonia's Caixa de Terrassa and Caja General de Ahorros de Granada pooled 7,682 mortgages in TDA 6, a vehicle managed by Titulización de Activos. EBN Banco lead managed the bond -- Caja de Ahorros del Mediterráneo, SG, Crédit Agricole Indosuez and Bank Austria joined the three issuers as underwriters. Market participants believed a third to a half of the paper was sold to investors -- the issuers retained the rest for use as repo collateral.

WHO IS Billy Johnson at Warburg Dillon Read? Yes, we had never heard of him either. We know all about Billy the Kid, Billy Carter, Billy Joel, Billie-Jean King and Billy the Goat but Johnson had never crossed our screen.

Kensington Mortgage Company, the UK non-conforming mortgage lender, this week issued a £145.2m tap of its innovative Residential Mortgage Securities 4 deal, launched in June by Deutsche Bank. RMS 4 broke new ground by creating separate, tradable securities from every scrap of cashflow on a mortgage portfolio, and was also the first UK non-conforming mortgage deal to be 144A eligible.

* European Investment Bank Rating: Aaa/AAA

In size as in geography, the UK asset-backed market lies somewhere between the US and continental Europe. It is nearly twice as big as the French market (its nearest European competitor) but only a tenth the size of that in the US.

KENSINGTON Mortgage Company, the UK non-conforming lender, broke new ground this week by creating separate, tradable securities from every scrap of cashflow on a mortgage portfolio. The company launched a £111.4m bond through Deutsche Bank, which was also the first UK non-conforming mortgage deal to be 144A eligible.

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* Deutsche Pfandbrief- und Hypothekenbank AG Rating: Aa3

* Merrill Lynch will next week launch Contimortgage Home Equity Loan Trust 1998-2, a $1.75bn deal with fixed and floating rate tranches. * Deutsche Bank is believed to be preparing a £115m residential mortgage securitisation for Kensington Mortgage Co -- the deal may launch as early as next week.

LARGELY STARVED OF SUPPLY IN THE conventional UK mortgage-backed market, many participants have pinned their hope on the development of a market for sub-prime, or non-conforming mortgages.