SCIWire

Euro secondary steps up

Tuesday 27 June 2017 09:26 London/ 04.26 New York/ 17.26 Tokyo

Activity has started to step up across the European securitisation secondary market following an extended series of relatively quiet sessions.

Flows continue to be thin, though there have be patches of increased activity seen in a variety of sectors since the end of last week and into this. At the same time, rotation activity combined with month- and half-end positioning has generated a surge in BWIC volume today.

To date, sentiment has remained positive and secondary spreads are flat to slightly tighter across the board over the past 10 days or so. Pricing levels provided by today's BWICs could give a stronger sense of future direction and give fresh impetus to trading. However, the looming summer doldrums could equally cause activity to quickly fizzle out once more.

There are currently four ABS/MBS and two CLO BWICs on today's European schedule. The chunkiest among the former is a €53.2m four line ABS mix.

Due at 11:00 London time the list comprises: ABEST 11 A, BSKY GER6 A, DRIFR 3 A and MCCPF 2017-1 A. Only MCCPF 2017-1 A has covered on PriceABS in the past three months - at 100.597 on 22 June.

The largest CLO list is due at 15:00 and involves 16 European deals totalling €48.545m - ARESE 2007-1X D, ARESE 2007-1X E, AVOCA VIII-X D, AVOCA VII-X D1, BOPHO 2X D, CELF 2006-1X D, CELF 2007-1X D, EATON 2007-10X D1, EGLXY 2007-2X D, HARBM 9X D, HARBM PR2X B1E, HARBM PR3X B1, HARVT IV C, HEC 2006-2NX D, HEC 2007-3X D and PENTA 2007-1X D. Plus one $2m line of ATRM 10A CR.

Four of the bonds have covered with a price on PriceABS in the past three months, last doing so as follows: ARESE 2007-1X E at H100H on 31 May; AVOCA VII-X D1 at M98H on 30 March; HARBM 9X D at 98H on 30 March; and HEC 2006-2NX D at 99.615 on 2 June.

27/06/2017 09:26:07