European auto securitization activity will see more deals privately placed via conduit transactions, said one industry source. A number of auto manufacturers are also exploring dealer floor plan structures. Europe saw its first public dealer floorplan securitization last year via Cars Alliance Funding PLC but it is likely that the deals that will come to market this year will be done through the private market, said an analyst at Standard & Poor's. The rating agency rated the first public deal and tends to see many of the private dealer floorplan structures as well.
Car rental securitizations, a well-established asset class in the U.S. market, is another area that is expected to generate volumes in Europe. The industry source said that there have already been a couple of transactions in Europe done last year that were privately placed. The deals expected this year are expected via the private placement market.
