With a little over six weeks left in 2005, there is no sign that European securitization volumes are shrinking and pricing levels indicate that there's been no shrinkage in appetite either. Primary marketing continues to swell aggressively close to 30 billion ($35 billion) for the near term with a wide variety of collateral available. "We do not believe the market has yet shifted the upper hand from a sellers' perspective to a buyers' one, but it grows closer to a balance," said analysts at The Royal Bank of Scotland.
It's been a year of firsts for the European auto sector that saw its first wholesale dealer floorplan transaction and last week saw DaimlerChrysler AG set a new pricing benchmark for European auto ABS paper. Silver Arrow Compartment 1 priced its 1.5-year A class at five basis points over Euribor and its B class notes at 16 basis points over Euribor. "Daimler set up and structured the deal to appeal to investors - they wanted their first deal to be well accepted, to position themselves for future issuance in Europe, the short average lives appeal particularly to money market funds - the pricing achieved reflects that," said one market source.