European securitisation up 40% this year

The first quarter of 2006 saw issuance up by 40% compared with the first quarter of 2005, at €65 billion, according to the European Securitisation Forum (ESF). But the figure was down significantly from the previous quarter, which showed €135 billion issuance. The fourth quarter of the year, however, is traditionally the strongest, the ESF said.

The majority of the issuance was in the form of residential mortgage-backed securities (RMBS), which saw volumes of €39.4 billion, up 46.7% from 2005. RMBS also represent 59% of total issuance, up from 44% in the fourth quarter of 2005.

The ESF expects issuance in this sector to continue to grow strongly. "The long-term market potential for RMBS has barely been scratched given [that] a relatively small percentage of residential mortgages have been securitised in Europe," said Rick Watson, the ESF's managing director.

Collateralised debt obligations (CDO) were the second-largest market sector. And they grew faster than any other sector - up 60% to €10.6 billion from 2005. Continued use of collateralised loan obligations on leveraged loans meant this sector of the CDO market was the largest, representing 40% of total CDO issuance.

The UK continues to dominate the European securitisation market, with 60% of all issuance occurring in the UK. Spain and the Netherlands are in second and third place respectively, with about 13% each.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: