European auto paper got off to a slow start this year, but market sources say that auto ABS supply has historically been uneven compared to the U.S. However, changes on the horizon could see issuers becoming more dependent on securitizations.

"The relative immaturity of the European auto ABS market, compared to the U.S. auto ABS market, means that issuance volumes in Europe are about 10% of that in the U.S., despite a comparable volume of vehicle sales in both economies," explained Paul Geertsema an analyst on the securitization research team at Barclays Capital. "Thus far European auto ABS issuance has tended to be lumpy - in some years we see more and in some less, but going forward I would hazard to say we might see a pick up in auto ABS issuance."

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.