Deutsche Bank is preparing a follow-on collateralized debt obligation to an unmanaged residential mortgage-backed securities CDO. The first STAtic ResidenTial CDO (START) 2006-B, is set to close month-end and was doubled to $1 billion ahead of pricing July 24, structurers said. It is a cash-flow structure referencing 100% pay-as-you-go credit-default swaps on recent vintage RMBS.

The follow-up deal will have different collateral--details of which could not be determined--but a similar structure to 2006-B. It will be the sixth deal in the START series and third this year. Deutsche Bank issued three START deals last year and is considering adding a high-yield deal to the START range.

2006-A and 2005-B each were $1 billion and 2005-A and 2005-C each were $500 million. Each had different collateral.