The increased numbers of European banks and other originators making tender offers to buy back their structured finance issues primarily reflect originators taking advantage of opportunities to optimize their funding profiles and capital structure.

Tender offers often appear to be motivated by originators taking opportunistic advantage of the apparent differential between current distressed secondary market prices - which are usually lower than the tender offer price - and the implied value that originators see, indicated by the expected credit performance of the related securities. The tender offer allows a degree of deleverage for the originator and the potential ability to book a profit.

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