Some European market players said that there is increasing appetite by outside buyers for European ABS.
For secondary distressed assets, one market trader said that there has been a surge in buyers interested in on-the-run European assets such as Irish, Spanish and Portuguese RMBS.
Henderson Global Investors analysts also said that there is one dominant large U.S. bank treasury, plus a relatively small number of other large ticket investors that will be key to the successful distribution of many primary pipeline deals.
There are also rumors of another large U.S. bank treasury looking to enter the European ABS market in meaningful size.
"We can only speculate as to the potential motivations for such treasury operations but the strongest banks, increasingly being regarded as safe havens for surplus cash, are no doubt finding deploying deposit funds into a diverse range of secure investments a challenge," said Henderson analysts. "The collateral security and yields available in European prime senior ABS are perhaps looking increasingly attractive."
