There's been no shortage of RMBS supply in the European securitization market so far this year, yet industry accounts still point to an unstated demand among investors that continues to drive pricing in, despite the heavy calendar ahead. But will changing market dynamics be enough to calm the consumer frenzy?
So far, the market maintains a voracious appetite for consumer assets in general, and industry sources argue that, although the migration to consumer from corporate credit may have been justified under the corporate credit buckling that began in 2001, market dynamics today are quite different. "For the past four or five years the market has been dominated by a rather benign core consumer credit environment but it's likely to change this year," said one industry source. "Still, expect a lot more activity from the consumer sector before investors become comfortable with the corporate credit cycle."