ABS Market Is on a Roll and Promises Yet More

Financial News, December 10, 2001 | Go to article overview

ABS Market Is on a Roll and Promises Yet More


Byline: Piers Townsend

Buyers and sellers in the European asset-backed securities (ABS) market are used to hearing about new records for the sector. November was the heaviest month of this year, with E13bn ($12bn) of supply, while new issuance in December may exceed E17bn.

Issuance for the year as a whole will also be a record for the European market, at more than E120bn.

The pipeline for December, a month when investors usually close their books, is uncharacteristically large. Deals expected in the next three weeks include Blue Danube, an Austrian residential mortgage-backed (RMBS) deal; two Italian RMBS deals and a commercial MBS transaction by a Lehman Brothers subsidiary.

The biggest deal this month so far was a Dutch loan-backed deal that priced last week. Launched through a special purpose company called Smile 2001, the deal will set its own record at E5bn, since it is the largest individual transaction in the European ABS market. It is the first securitisation of Dutch secured loans to small and medium enterprises, all of which were originated by ABN Amro, and represents around 10% of the bank's portfolio of that type of asset.

Mike Nawas, head of European securitisation at ABN, says: "The year-end peak of issuance is more intense and later than in previous years. We have been doing own-balance sheet deals for a while and we believe that we have the distribution capability to do jumbo transactions without hurting spreads."

ABN also issued Amstel, the largest corporate loan-backed deal (CLO) in Europe. Like Smile, the E1bn Amstel CLO deal is secured on assets originated on ABN Amro's balance sheet - in this case a whopping E12.5bn-worth of loans.

In Amstel's case the risk of the loan pool is transferred synthetically using derivatives. Both deals allow the bank to free up regulatory capital that can be used more profitably elsewhere.

Demand for most types of ABS has been huge.

Nawas says of the bank's Amstel deal: "Investors derive comfort from the quality of ABN Amro's credit policies and the rigorous structure of the securitisation. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

ABS Market Is on a Roll and Promises Yet More
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.