In Q3 2013, EUR 35.4 billion of securitised product was issued in Europe, a decline of 30.7% and 41.0%, respectively, from Q2 2013 (EUR 51.1 billion) and Q3 2013 (EUR 60.1 billion). Of the EUR 35.4 billion issued, EUR 15.1 billion was placed, representing 42.7%, compared to EUR 18.7 billion placed in Q2 2013 (representing 36.5%) and EUR 15.0 billion placed in Q3 2012 (representing 25.1%).

Net issuance in the third quarter remained negative. At the end of Q3 2013, 1.54 trillion was outstanding, of which 812.3 billion (52.7% of outstanding) was retained, presumably for repo or other secured financing. Since the peak in the third quarter of 2009, outstandings have fallen 32.0%, largely from declines in outstanding balances from UK RMBS; to a lesser ex-tent Spanish RMBS, Italian RMBS, Spanish SME, and Pan European CMBS have contributed to the decline in balances.

Dutch RMBS led placed totals in the third quarter followed by the revived European CLO market. Other, more traditional, asset classes like German auto, UK RMBS were placed. Notably, the first Italian SME deal post crisis was placed – Berica – of which the senior tranche amounted to EUR 930 million.

About the Report

The AFME / ESF data report, done in partnership with AFME / ESF, is a quarterly report that consolidates both U.S. and European data for the securitisation markets:

• issuance activity;
• deal sizes;
• outstanding balances;
• rating changes;
• credit spread changes;
• index data;
• ABCP issuance; and
• highlights and commentary.

For more information on AFME’s efforts in the European structured finance sector, please visit AFME.

Credits

AFME / ESF

• Managing Director: Richard Hopkin
• Associate: Vicenzo Anghelone

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Assistant Vice President, Research: Sharon Sung