It was another week of heightened activity in the European ABS market, although the pipeline for new deals is closing up as the year comes to an end. Pricing levels remain relatively decent, sources said, despite heavy issuance. The market showed little sign of traditional year-end spread widening.
The CMBS pipeline continues to deliver, with a heavy load of issues last week from the continent. The E964.1 million (US$1.14 billion) Paris Residential Funding priced its triple-A piece at 38 basis points over Euribor, the double-As at 65, the single-As at 100 and the triple-B plus piece at 205 basis points. Sources at Dresdner Kleinwort Wasserstein noted that, particularly at the senior level, PRF came relatively tight for the asset class, attributed to a more granular underlying collateral than is typical for these deals.