SCIWire

Euro secondary supply spikes




This week is scheduled to see a spike in the volume of paper in for the bid across the European securitisation secondary market.

Last week was once again very quiet, exacerbated by the Vegas conference and month-end, and yesterday's session was similarly slow. However, flows could be kick-started by the growing BWIC schedule for this week headlined by a very large mixed list due on Friday as a result of the liquidation of the Carnuntum High Grade I CDO.

Any supply is expected to be met with healthy demand as tone remains strong across the board and is still bolstered by lack of new issuance. The limited trading activity over the past week or so continues to leave ABS/MBS secondary spreads unmoved, but in CLOs, where there have been occasional flurries of activity, lower mezz spreads have edged in, though the rest of the stack is still little changed.

There are currently three BWICs on today's European schedule. The most eye-catching of which is a sizeable pair of UK non-conforming seniors due at 15:00 London time - €10m of EMAST 2007-1V A2 and €107.15m of NGATE 2007-3X A2B.

Neither bond has appeared on PriceABS in the past three months.

07/03/2017 09:06:37



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