New issuance in the European securitization market for the last three quarters of 2006 increased 54.1% versus the same period in 2005, said a report by the European Securitization Forum released today.

New securitizations that came to market reached € 283 billion compared to last year's € 196.2 billion. Meanwhile, new issuance is on target to reach € 350 billion for the whole year, the ESF added. This growth was fueled by RMBS issuance that rose 70% to € 150.6 billion. This sharp increase has resulted in RMBS accounting for 53.2% of the European securitization market.

Meanwhile, the CMBS market volume is increasing by leaps and bounds too. Issuance in this sector is set to be more than € 50 billion at the end of the year. This tremendous growth happened during the last three quarters. During this time period, issuance in CMBS jumped 36.7%.

In other asset classes, the ESF said that total auto ABS that came to market in these three quarters almost tripled -- jumping to € 4.87 billion.

Geographically speaking, the United Kingdom had the lion's share of issuance, according to the ESF. U.K. issuance in the first three quarters of 2006 made up 54.4% of total new issuance -- amounting to a whopping € 154 billion.

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