After a relatively lean spell of issuance in the European ABS sector, some market participants are predicting that there will be a significant pick up in the next month and beyond. After a cautious take up of deals in the first part of this year, it is felt that many investors have an excess of cash to spend and are looking to build up their portfolios substantially.
"From what we're hearing and doing, we expect there will be a strong surge forward in May," said one ABS research analyst in London. "Investors have definitely been disappointed by what has been on offer so far, but they will be looking forward to a better variety of deals after the Easter break."
In particular, the analyst believes that issuers will respond to investors desire for more CLO and CDO deals. Italy will also be a big source of transactions in the months to come.