Euro Securitisation Issuance on the Rise?

Good short summary recapping recent securitisation market activity on ftseglobalmarkets.com yesterday.

A couple of items that jumped out at us from the below chart:

  • Despite the anchor that the continued lack of clarity and commercialism in EU regulations for securitisation has created, there is a steady tend upward in the Euro market.  Nevertheless, it is hard not to notice just how far the market has to go to return to pre-crisis issuance levels.
  • On the other hand, US issuance levels seem headed to either matching or getting close to equaling 2007 issuance levels in 2017.

One is left wondering what the results might look like if EU regulators were to finalize a rationale approach to securitisation structures in their market.

European securitised transactions rise 26% in last quarter says AFME

Friday, 27 January 2017
European securitised transactions rise 26% in last quarter says AFME.  In the fourth quarter (Q4) 2016, €59bn of securitised product was issued in Europe1, an increase of 26.9% from Q3 2016 (€46.5bn) and a decrease of 19.0% from Q4 2015 (€72.8bn).  In the fourth quarter (Q4) 2016, €59bn of securitised product was issued in Europe1, an increase of 26.9% from Q3 2016 (€46.5bn) and a decrease of 19.0% from Q4 2015 (€72.8bn).  Some, €31.1bn was placed in Europe, accounting for over half (52.7%) of overall volume, compared to €21.5bn placed in Q3 (representing 46.2% of €46.5 bn) and €15.7bn placed in Q4 2015 (representing 21.6% of €72.8bn).

Pan European CLOs led placed totals followed by UK RMBS and UK Auto ABS. Pan European CLOs increased from €4.6bn in Q3  to €9.2bn in Q4 2016.  UK RMBS increased from €4.1bn in Q3 to €5.6bn in Q4, while UK Auto ABS increased from zero in Q3 to €2.9bn in Q4.

EU Securitisation Volume 2007-2016

 

Values in EUR BN      2007       2008      2009      2010      2011      2012      2013      2014      2015      2016

EU Placed                    419.2        105.5       24.7         89.8       88.9      87         75.9        78.2       83.2      96.4

EU Retained                175.7         713.2     399.3     288.1     287.9    170.9    104.8      138.8    133.2    141.2

EU Retention (%)       30%          87%       94%        76%       76%       66%      58%        64%       62%       65%

Total EU                       594.9        818.7     423.9      378        376.8    257.8    180.8      217        216.4     237.6

Total US                        2080.5    934.9     1385.3    1203.7   1056.6   1579.2  1515.1    1131.5   1617.5   1746.3

Source: AFME January 2017