Despite predictions that September and October would be frantically busy, ABS and MBS issuance in Europe was reasonable but not quite the deluge that many were expecting.

Bankers and investors had spent the summer suggesting that with worries looming over Y2K issuers would likely launch a flood of deals at the end of the third quarter or the start of the fourth, but this has not proved to be the case. "Why was it not as busy as we expected?" asked one investor. "Perhaps while spreads have been relatively wide European issuers have not been willing to pay that much and as securitization is usually not core funding for Europeans they can afford to wait for spreads to come in."

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