The upward trend in European issuance remains unstoppable. As evidence, by the middle of last week, dealers were expecting at least 18 billion ($22.9 billion) of the 42 billion circulating in the new issues pipeline. Meanwhile, the RMBS sector continued to roll in the deals, with new issues entering the pipeline as giant deals priced.

The European Securitization Forum (ESF) tallied total securitization issuance in the third quarter this year at 107.1 billion, a 150% rise on the same period a year ago, mainly driven by the large wave of RMBS activity. According to ESF figures, RMBS issuance totaled 150.6 billion in the first three quarters, an increase of over 70% in the same period last year. RMBS issuance now accounts for 53.2% of the European securitized market, compared with 48.1% at this stage in 2005. But despite this growth in supply, deals are still benefiting from tight spreads, which should continue to fuel growth in this market sector.

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