"Since the beginning of 2007, we have seen a tightening of lending standards and a reduction of introductory offers to new borrowers, which has set the ground for improvement in performance and better positioned these structures to weather a downturn," said Anca Gagea, ABS research analyst at Barclays Capital. "That said, the biggest driver for consumer asset performance is unemployment, and we are seeing that go up in the U.K., which has begun to have an impact on performance."

Gagea explained that the meat of European credit securitization transactions originate in the U.K.

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