In Q3 2011, EUR 52.6 billion of securitised products were issued in Europe, a decline of 21.7% from Q2 2011 (EUR 61.7 billion) and a decline of 52.9% from Q3 2010 (EUR 111.5 billion). The percentage of placed issuance in Q3 2011 was significantly lower than in Q2 2011, with 22.4% of Q3 issuance placed (EUR 11.8 billion), compared to the 38.6% of Q2 (EUR 25.9 billion).

From Q1 to Q3 2011, a total of EUR 233.4 billion of securitised products were issued; of this, approximately 26.9% was placed (EUR 62.7 billion). The total placed issuance from Q1 to Q3 2011 is slightly lower than the total placed issuance from Q1 to Q3 2010. In 2010, the percentage of placed issuance was 30.6% (EUR 67.1 billion).

The European sovereign debt crisis continued to weigh in on fundamentals in the third quarter of 2011 (Q3 2011). On 21 July 2011, the Council of the European Union agreed on a number of measures to stabilize the euro area. The measures include: a new programme for Greece; increasing the voluntary involvement of the private sector; and increasing the flexibility of the European Financial Stability Fund (EFSF) and the European Stability Mechanism (ESM). The new pro-gramme for Greece will involve lengthening the maturity of EFSF loans to the allowable maximum and lowering lending rates (also historically applied to Portugal and Ireland). At the end of Q3 2011, the more flexible EFSF was ratified and became fully operational.

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, Director of Capital Markets: Rick Watson
• Manager: Sidika Ulker

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Director, Research: Sharon Sung