KBRA UK Releases Research – European Securitisation: Recovery Continues

LONDON--(BUSINESS WIRE)--KBRA UK (KBRA) releases a research report examining the European securitisation market in Q3 2023.

European securitisations sold and placed with investors experienced a strong recovery in Q2 and Q3 after a slow start to the year and are now on a similar pace with recent years. Meanwhile, retained volumes have increased to levels last observed in 2016, which is unexpected given the retrenchment of the European Central Bank’s targeted longer-term refinancing operations. Third-quarter volumes, largely due to a very strong September, have highlighted the recovery of the broader issuance markets and ongoing investor interest in the sector. The report provides insight into the transactions circulated into the European securitisation market with a focus on those distributed to investors.

Key Takeaways

• Newly circulated transaction volumes have returned to pace, with first nine-month (9M) 2023 volumes totalling EUR73.5 billion.
• Auto asset-backed securities (ABS) dramatically increased volumes, collateralised loan obligations (CLO) improved but remain off the pace of recent years, and UK collateral still dominates the supply of transactions sold to investors.
• Retained transactions remain notably high for the year with EUR107.8 billion in 9M 2023, which is 24% more than the next highest 9M volume over the past five years.

Click here to view the report.

Related Publications

• European Securitisation: Market Returns to Pace
• European Securitisation: Sluggish Issuance Continues in 2023
• KBRA’s European Securitisation Survey: Diverging Views
• European Securitisation: Quiet End to 2022
• 2023 European Structured Finance Sector Outlook: Stable Performance to Be Tested
• European Securitisation: Market Slows but Still Active in Q3 2022
• European Securitisation: Slowdown Takes Hold in Q2 2022

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.