In Q3 2014, EUR 35.7 billion of securitised prod-uct was issued in Europe, a decline of 64.1% and 6.5%, respectively, from Q2 2014 (EUR 99.5 billion) and Q3 2013 (EUR 38.2 billion). Of the EUR 35.7 billion issued, EUR 18.0 billion was placed, representing 50.4%, compared to EUR 19.6 billion placed in Q2 2014 (representing 19.7%) and EUR 17.1 billion placed in Q3 2013 (representing 44.8%).

Net issuance in the third quarter rose for the first time in years, in part due to the strength of European CLO issuance. UK RMBS led placed totals (EUR 4.3 billion) in the third quarter, followed by European CLOs (EUR 3.7 billion). German and UK autos rounded out the largest deals placed in the third quarter.

Despite the uptick in upgrades, only 77.5% of European securitized product are rated investment grade as of Q3 2014, compared to 81.7% at original issuance. AAA-rated product represents only 37.2% of the market based on current ratings, compared to 59.2% at issuance.

About the Report

The AFME / ESF data report, done in partnership with AFME / ESF, is a quarterly report that consolidates both U.S. and European data for the securitisation markets:

• issuance activity;
• deal sizes;
• outstanding balances;
• rating changes;
• credit spread changes;
• index data;
• ABCP issuance; and
• highlights and commentary.

For more information on AFME’s efforts in the European structured finance sector, please visit AFME.

Credits

AFME

• Managing Director: Richard Hopkin
• Manager: Anna Bak
• Manager: Vincenzo Anghelone

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• AVP, Research: Sharon Sung