While the European primary ABS market for vanilla issues has been quite healthy, analysts say that esoteric asset classes have suffered in the secondary markets - with nearly frozen secondary trading on these deals.

"Primary issuance [of esoteric assets] is still going quite well and still being picked up, while secondary trading [of theses assets] is extremely poor," said one investor. "The bid-offer reflects the general market notion that these are difficult deals, but what is interesting is... buyers seem to be all right on the primary side, yet for some reason there seems to be a problem on the secondary side."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.