While European ABS issuance for the first half of the year came in at 132 billion ($157 billion) - topping 2004's first-half tally of 103 billion - the more amazing statistic is that approximately 70% of this issuance was printed during the second quarter. Market analysts said that issuance should slow in the second half of the year, with an already lighter pipeline visible last week, leading to further spread tightening this year.

The Royal Bank of Scotland analysts said that spreads moved in tighter toward the end of the week but subscription levels are just making the grade, rather than reaching massive multiples. Among the new deals offered was a GBP400 million nonconforming U.K. RMBS deal for Money Partners, which is 20% owned by Kensington Group. Money Partners targets first- and second-charge mortgage borrowers.

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