After a relatively quiet start to the year, auto securitization volumes kicked into overdrive in early October and market sources said it's likely to continue throughout the fourth quarter. The auto ABS market has been falling into near insignificance for some years now, with the sector poised to show one of the weakest growth rates among the various European asset classes. However, the current pipeline means 2006 is now expected to be a record year in terms of absolute auto sector volume.
Furthermore, the market can look forward to hosting the first dealer floor plan deal. Standard & Poor's analyst Chris Such said that, following the assignment of private ratings to a dealer floorplan securitization in the first half of 2006, he expects to see further transactions of this type during the second half of this year and anticipates the first European rental transaction to hit the market early in 2007.