SCIWire

Euro secondary sporadic

Thursday 1 June 2017 09:42 London/ 04.42 New York/ 17.42 Tokyo

The European securitisation secondary market continues to exhibit the pattern of recent weeks with sporadic bursts of activity in specific areas.

The stop-start nature of all asset classes has been further exacerbated by recent public holidays, month-end and the run-up to Global ABS. With wholesale absences at the conference next week little is likely to change in the near future.

Yesterday saw another diverse day in ABS/MBS with very light flows but a strong BWIC calendar headlined by a 30 line mixed mezz list. Notwithstanding that those auction results are yet to be released, the overall grind tighter in ABS/MBS secondary spreads continues supported by strong market tone.

European CLOs have seen more consistent activity of late, fuelled by a pick-up in BWIC volumes over recent sessions. Nevertheless, the overwhelming buying bias is being maintained across vintages and throughout the majority of the stack with spreads down to lower mezz edging in further over the past week.

There are currently six BWICs on the European schedule for today - three ABS/MBS and three CLOs. Among the former the largest is a four line collection of RMBS seniors due at 13:30 London time.

The 33.923m euro and sterling list comprises: FSTNT 9 A1, PMF 1 A, RMS 25 A1 and THRON 2014-1 A. Two of the bonds have covered on PriceABS in the past three months - PMF 1 A at 100.485 on 4 May and RMS 25 A1 at 102.285 on 18 May.

The longest CLO list is a €17.735m three line auction due at 14:00 involving ARESE 7X D, ARESE 7X E and GLGE 1X E. None of the bonds has covered on PriceABS in the past three months.

01/06/2017 09:42:33