The European structured finance market has seen a rise in the ratio of deals sold to investors over those that are retained, according to analysts at Bank of America Merrill Lynch.
They reported in today's European SF & Cross Product Weekly that 85% of U.K. RMBS issued so far this year went to the market, as opposed to 74% in 2011. For German auto ABS the current figure is 95%; a 2011 comparison was not provided.
The share of Dutch RMBS placed with investors has crept a little higher as well, from 22% year-to-date from 19% in 2011. The analysts said this generates an investment opportunity in this particular sector.
"We believe that investors, especially in the US, who make an effort to better understand the Dutch market beyond the headline numbers will eventually appreciate the opportunities the market has to offer," the analysts said.