Synthetic deals are the growth engine driving the securitisation market in Germany this year. Synthetic securitisation volumes totalled $6.03 billion at the end of the first quarter of 2002, compared with $400 million at the same time last year. Increasing amounts of German corporates are using synthetic securitisation issues to better manage their balance sheets. Torsten Althaus, director of structured finance at Standard and Poor’s, said he expects the synthetic market to continue dominating the German securitisation market. Althaus said the Kreditanstalt fur Wiederaufbau (KfW) “provide” and “promise” programmes were good templates for small and medium-sized institutions to launch their own synthetic securitisation programmes.