Despite the ongoing euro area debt crisis, European auto ABS have remained a stable and active asset class with continued investor interest for standard auto assets (auto loan and auto lease receivables to private individuals and SMEs) over the last few years. Over the past 18 months, issuance in this asset class has come predominantly from Germany, France and the U.K. More recently, Norwegian and Swiss receivables have entered this asset class.

During the crisis, the major auto ABS performance indicators (i.e., 60+ day delinquencies, cumulative defaults and losses) have generally performed well, according to Moody's EMEA Auto Loan ABS Indices. In addition, investor demand has remained buoyant on the back of the relatively short average life and maturity of these transactions compared to other asset classes (i.e., residential mortgages).

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