Standard & Poor's believes the European ABS market will see increased diversity and increased volume in the latter half of the year, the rating agency said Tuesday. The report entitled Scope and Scale of European Asset-Backed Transactions Widen (to see fill report click here) from the ratings agency shows funded European ABS issuance rose to €24.1 billion in the first half of 2004, compared to €14.9 billion in the same period of 2003. Italy accounted for approximately 43% of the total.

"From oil to telecom receivables, the range of assets securitized in Europe in the first half of 2004 continued to broaden," said credit analyst Chris Such, a director in the structured finance group. "In addition, the mainstays of autos, credit cards and leasing deals increased their use of the market in 2004 compared with 2003."

Such also noted that the pipeline of transactions is still solid, and the market will asset types such as leases, credit cards and auto loans. However, as Europe continues to see the securitization of more diverse assets from traditional European players, S&P had identified new players preparing to access the market. Greece, Eastern Europe and Scandinavia were noted.

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