KBRA Releases Research – European Securitisation: A Resurgent Market

LONDON--(BUSINESS WIRE)--KBRA UK (KBRA) releases a research report on the European securitisation market in Q4 2023.

European securitisation markets recorded a strong full-year 2023, with volumes increasing for both transactions sold to investors and those retained. Securitisations sold to investors were bolstered by strong volumes from auto asset-backed securities (ABS) issuers. An aggressive start to 2024, as shown by a number of prime residential mortgage-backed securities (RMBS) transactions already in the primary market—combined with indications from the results of KBRA’s December investor survey—suggest a strong first quarter ahead. This momentum builds on 2023’s year of positive growth for European securitisation. This KBRA report provides insight into the transactions circulated into the European securitisation market, with a focus on those that were distributed to investors.

Key Takeaways

• Newly circulated transaction volumes beat out the prior year’s total, with EUR107.9 billion in 2023 versus EUR87.9 billion in 2022.
• Auto ABS dramatically increased volumes, outpacing RMBS and collateralised loan obligations (CLO) for the first time, which was helped by strong UK and German collateral.
• UK volumes sold to investors increased dramatically year-over-year to reach EUR36 billion, with growth in German and Italian collateral supporting strong euro area volumes.

Click here to view the report.

Related Publications

• European Securitisation: Recovery Continues
• 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.