The ESF survey panelists expect continued issuance growth in 2007, surpassing the record established in 2006. They base their higher issuance forecast on favourable macroeconomic conditions of strong growth and employment
trends, additional products and investors in the marketplace and ample market liquidity, taking into account moderately rising interest rates. The median response for European cash funded securitisation issuance volume projects EUR 531 billion for 2007, a 16.4 percent growth rate from the EUR 456 billion issued in
2006. The highest volume sectors in 2007 are projected to be RMBS, CMBS and CDO, as they were in 2006. Volume growth, however, will be broad based with growth forecasted for most of the asset class sectors. In addition to funded issuance growth, the panelists expect synthetic issuance to also grow at about a 30
percent pace.

About the Report

The forecast survey covers the range of European securitised product asset classes, including residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), consumer and corporate asset-backed securities (ABS) and collateralised debt obligations (CDO). The survey includes responses from 8 ESF member firms. The survey also asked panelists for their views on the development of the European securitised markets, including the state of liquidity and investor demand.

Credits

AFME / ESF

• Rick Watson
• Carloes Echave
• Marco Angheben

SIFMA Research

• Michael Decker
• Steve Davidson
• Kyle Brandon
• Marcelo Vieira