KBRA Releases Research – European Securitisation: Steadily Upwards
10 Octubre 2024 - 9:53AM
Business Wire
KBRA releases research on the issuance dynamics of the European
securitisation market. Q3 2024 steadily continued on the back of
the strong pace set during 1H 2024 for European securitisation
markets. An expected summer break failed to materialise as the
market kept up a regular pace of issuance, already resulting in the
strongest post-global financial crisis (GFC) year for newly
circulated transactions. Volumes are up across a number of sectors,
including broadly syndicated loan collateralised loan obligations
(CLO), residential mortgage-backed securities (RMBS), consumer
asset-backed securities (ABS), and auto ABS transactions. The
pipeline appears to be continuing as we head towards year-end, but
Q4 may be lighter than historical norms, given the strength of the
year so far. Retained volumes remain muted, but several
transactions are still issued and held for liquidity purposes.
Further, as more commentaries come out in favour of change for
securitisation regulations, there remains a positive tailwind to
the market going into 2025.
Key Takeaways
- Newly circulated transaction volumes continue at a record
post-GFC pace with EUR117.8 billion of European securitisation
transactions sold to investors in the first nine months (9M) of
2024. This is already more issuance than any full year since
2007.
- RMBS, CLO, as well as auto and consumer ABS volumes have led
the investor-placed market, with some specific segments showing
strong growth. Consumer ABS volumes and buy-to-let collateral have
more than doubled compared to 9M 2023. Italian lending has been at
the core of collateral growth with volumes from the region tripling
versus the prior year.
- CLO volumes continue to set a strong new issuance pace, but Q3
reset activity has been the major focus with the second-largest
quarterly reset volume in the past five years. So far, volumes have
reached a total of EUR35.3 billion in new transactions and EUR16
billion in resets, as well as EUR1.3 billion in refinancings. While
the arbitrage opportunity could diminish, the market remains on
pace for a very strong year.
Click here to view the report.
Related Publications
- Navigating European CLO Tail Risk: Mind the Amortisation
Gap
- European CLOs: Too Big to Hold?
- UK Mortgage and Housing Trends: May 2024 Update
- KBRA’s European Securitisation Survey: Positive Sentiment
Grows
About KBRA
KBRA is a full-service credit rating agency registered in the
U.S., the EU, and the UK, and is designated to provide structured
finance ratings in Canada. KBRA’s ratings can be used by investors
for regulatory capital purposes in multiple jurisdictions.
Doc ID: 1006328
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version on businesswire.com: https://www.businesswire.com/news/home/20241010621902/en/
Gordon Kerr, Managing Director, Head of European Research +44 20
8148 1020 gordon.kerr@kbra.com
Media Contact
Adam Tempkin, Director of Communications +1 646-731-1347
adam.tempkin@kbra.com
Business Development Contacts
Mauricio Noé, Co-Head of Europe +44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director +44 20 8148 1002
miten.amin@kbra.com