The month of September is only half over and the European securitization market has already priced 27 billion ($34.3 billion) of new deals. With another 20 billion actively marketing expected to price by the month's end, the question remains whether investors will tolerate tight pricing levels. More deals this month are getting done just at their order levels.
"We believe that the European ABS market is beginning to show signs of fatigue, with a staggering supply of transactions weighing on investor appetite," reported Royal Bank of Scotland analysts. "As a result, participants are increasingly getting allocated near or even at their order levels, a marked change from recent trends. We remain watchful of the trend going forward, but, thus far, secondary levels appear to be holding."