After a relatively slow end of August, the European ABS market is gearing up for what is set to be a busy September. Already in the first week of this month several deals are in the works as market players return to their desks after going on their summer vacations.
"We expect a rush of announcements this week from underwriters looking to market September-priced deals," Royal Bank of Scotland analysts said. "The visible European calendar stands at over 24 billion ($30.8 billion) in the short term, excluding 1.8 billion-equivalent of Australian dollar-denominated RMBS tranches some of which are targeted to the European investor base. We believe that dealers have been positioning for a strong month, but we still expect some margin pressure in certain sectors, such as CMBS, where strong supply has created spread sogginess."