Standard & Poor's expects securitization issuance in EEMEA - Eastern Europe, Middle East and Africa - to keep growing this year, albeit at a slower pace than in 2005 or 2006. In January, S&P predicted that flows in 2007 would climb past the 9.8 billion ($13.4 billion) in public deals posted in 2006. Updating its views in a July 31 report, the agency said that given the 5.1 billion issued in the first half of this year, the 2006 figure should indeed be trumped.

Existing asset securitization in EEMEA eclipsed future flow volumes for the first time in 2006, with a yawning gap of nearly 2 billion between the two asset classes. While the agency had expected that gap to hold, if not widen, it actually shrank in both absolute and relative terms in the first half of this year. "This highlights that in some jurisdictions future flows remain the most viable financing option," S&P said. However, the margin between the two should stretch out again in the second half as the pipeline for existing assets is bulkier than the one for future flows.

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