KBRA Releases Research – European Securitisation: Setting Records

KBRA releases a report on the European securitisation markets. Q2 2024 was the strongest quarter since 2007 for new transactions sold to investors in European markets. Q1 2024 demonstrated a healthy start to the year with ongoing growth in newly circulated transaction volumes, but the second quarter broke records. In addition, Q2 2024 saw the smallest quarterly volume of retained issuance since 2019. The quarter’s activity helped propel broadly syndicated loan (BSL) collateralised loan obligation (CLO) volumes, including resets and refinancings, to exceed all of 2023’s volume. While the pipeline is slowing as the market heads into a probable summer lull, sentiment remains firm for new issuance volumes. Time will tell if this is a new normal for the market as the European Central Bank retreats from bank funding and liquidity.

Key Takeaways

• Newly circulated transaction volumes have broken a post-global financial crisis (GFC) record with EUR80.4 billion of European securitisation transactions sold to investors in 1H 2024.
• Consumer asset-backed securities (ABS) volumes in 1H have surged to nearly 4x their prior-year level with EUR8.8 billion of new transactions. This has been led by transactions from Italy as collateral from the country reemerges.
• CLO volumes, including resets and refinancings, have already exceeded the total amount issued last year, with EUR25 billion of new transactions, EUR6.5 billion in resets, and EUR0.5 billion of refinancings so far. While the arbitrage opportunity may diminish in the second half, the market is on pace for a strong year.

Click here to view the report.

Related Publications

• European Securitisation: Positive Trend Continues
• Navigating European CLO Tail Risk: Mind the Amortisation Gap
• European CLOs: Too Big to Hold?
• UK Mortgage and Housing Trends: May 2024 Update
• Irish Mortgage and Housing Trends
• KBRA’s European Securitisation Survey: Positive Sentiment Grows
• Global ABS 2024: Day 3 Recap
• Global ABS 2024: Day 2 Recap
• Global ABS 2024: Day 1 Recap
• 2024 European Structured Finance Sector Outlook: Turbulence Ahead

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1005020

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