SCIWire

Euro ABS/MBS accelerates

Thursday 19 January 2017 09:45 London/ 04.45 New York/ 17.45 Tokyo

Activity has accelerated in the European ABS/MBS secondary market after a slow start to the week.

The continuing strong tone and investor cash reserves continue to fuel demand for paper, which has generated increased bilateral trading in most sectors over the past two sessions. At the same time, BWIC volumes remain low as sellers keep their powder dry, while the lack of primary supply gives no incentive to rotation activity. Consequently, secondary spreads are holding in across the board.

There are currently three BWICs on the European ABS/MBS schedule for today. The most sizeable is a £12.55m three line UK non-conforming list due at 15:00 London time.

The auction comprises: LMS 1 D, MARS4 4X E1C and RMS 28 F1. None of the bonds has appeared on PriceABS in the past three months.

19/01/2017 09:45:12