SCIWire

Euro secondary simmers

Thursday 9 March 2017 10:06 London/ 05.06 New York/ 18.06 Tokyo

The European securitisation secondary market is still simmering without yet fully coming to the boil.

Volumes have picked up a little this week as expected, but have not yet really taken off. Instead, familiar patterns are being maintained across the board - flows remain patchy and BWICs sporadic.

At the same time, demand continues to outstrip supply amid strong market tone and secondary spreads are flat to slightly tighter on the week so far. The CDO liquidation BWIC due tomorrow continues to draw widespread attention thanks not only to its size, but also to its multi-asset class composition, which should help to ensure it trades well.

Meanwhile, anticipation of the liquidation list looks to have shaken out a few more sellers. There are six ABS/MBS and three CLO BWICs on the European schedule for today so far.

In ABS/MBS a range of assets, jurisdictions and sizes are in for the bid, but the largest piece circulating comes in a €34.9m single line auction of BERCR 8 A due at 15:00 London time. The Italian RMBS last covered on PriceABS at 99.6 on 1 February 2017.

In CLOs the most eye-catching list is a single €10.5m slice of SPAUL 4X SUB. Due at 14:00 the equity piece hasn't covered on PriceABS in the past three months.

09/03/2017 10:06:22