European securitization activity picked up after the Easter bank holiday lull when deal flow tapered off in April.
Among the new paper to hit the pipeline is a new German auto ABS deal from Volkswagen. The €714.4 million ($1.2 billion) securitization will be issued under the Driver series, offering investors €690 million of triple-A floating rate notes. An added €24.4 million subordinated tranche is also being marketed under the Driver 9 program.
Also in the pike is a new deal from Santander's Fosse U.K. Master trust. Last year the issuer came to market with four deals between March and September 2010.
Despite the pickup in primary securitization activity so far this year, European issuance remains largely dominated by RMBS and ABS from the U.K., the Netherlands, Italy and Germany.
According to Unicredit analysts, RMBS transactions account for 65% of all publicly and privately-placed European issuance in year-to-date 2011.
"In RMBS, some 67% of all volume placed this year has been backed by U.K, mortgages, 24% is from the Netherlands and 9% was originated in Italy," Unicredit analysts said in a report. "So far, primary RMBS issuance has been limited to senior exposure."
They also said that there has been year-to-date roughly €2.7 billion of German auto loan issuance. Single auto ABS deals originated in Italy, the Netherlands and in the U.K. totaled €3.2 billion. Furthermore, some U.K. credit card tranches were issued publicly in 2011 worth €2.2 billion.