The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

The rush returns to ABS

From an asset class perspective, the CDO sector dominates the pipeline and within that sector CLO issuance is at the vanguard.

The last months of 2004 were notable for the lack of a traditional end-of-year rush to print structured finance trades. But this year the rush is back, with ABS syndicate bankers expected to work right up to the Christmas break to complete the backlog of deals.


To some extent, CLOs have been overshadowed this year by continued product innovation in the synthetic CDO space, with the introduction of various structures such as leveraged super seniors and credit principal protected notes.


“The CDO space is highly innovative in the way it adapts to market trends and investor appetite,” says Ganesh Rajendra, head of European securitization research at Deutsche Bank.


The flexibility of synthetic structures is one of its key strengths, allowing arrangers to build in greater yield or risk as the buy-side desires. However, these bespoke deals account for only a paltry 11% of European CDO issuance: managed cash CDOs are responsible for just under 40%; while half of CDO supply is of the traditional cash bank balance sheet kind.




Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree