SCIWire

Euro secondary returns

Thursday 7 September 2017 09:29 London/ 04.29 New York/ 17.29 Tokyo

The European securitisation secondary market is beginning to return to life after the summer.

August saw the usual seasonal lull in terms of trading volumes in ABS/MBS, but the buying bias remained across the board. Consequently, secondary spreads were flat to slightly tighter month on month.

CLO volumes saw less of a dip and from time to time, especially around broader market volatility over North Korea, had some relatively busy days. Overall, tone remained firm and spreads ended up tighter at the top of the stack, flat elsewhere but with some softness in evidence in lower mezz.

The first few sessions of September have seen a pick-up in activity in all sectors, both off- and on-BWIC, with generally strong prints, notably in prime autos, senior CLOs and UK RMBS. However, the market looks to have quickly settled back into the patterns of the past three or four months with positive sentiment, strong demand and limited supply keeping spreads firm, but not yet encouraging a big surge in activity.

There is currently one BWIC on the European schedule for today - a two-line CDO/CLO combination. Due at 13:00 London time it involves: €11.8m original face of MALIN 2007-1A VFNE and €13.6m PANTH V-A A1.

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

07/09/2017 09:29:34