Societe Generale analysts said that the unaddressed question of ABS paper illiquidity in Europe remains a problem for the Continent's securitization market.

Additionally, alternative investment such as new bond issuance in the unsecured credit market is also keeping investors well away from ABS paper.

The European ABS investor base remains very fragile, with a number of accounts still looking at deleveraging. SocGen analysts said that this is another important difference with the U.S. market, which has a much bigger investor base and has supported the faster recovery of U.S. ABCP markets, which analysts said is also linked to the various government initiatives.

"The situation will remain blocked as long as no significant initiatives are launched in the European market," analysts said.

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