© 2026 Arizent. All rights reserved.

ABS

European Primary Market Remains Quiet

Published Updated 2 Min Read

The August pipeline remained quiet, but market sources said that there is some indication that investors are looking to put money to work.

The problem is that, at the current spreads, it is unlikely that issuers will be tempted to veer away from the now-routine securitization and repo format that has accounted for over 90% of the issuance seen so far this year.

Nonetheless, the market continued to see a sprinkle of deals. Last week details emerged on Volkswagen Bank’s Ä967 million ($1.4 billion) true sale securitization of German auto receivables, dubbed Driver Six GmbH. It’s the eighth term deal issued by the bank, and it mirrors exactly the structure applied in the driver transactions, with a static portfolio starting to amortize immediately after the closing date.

The transaction is made up of Ä936 million two-year triple-A rated class A notes and Ä31 million 2.4-year single-A plus rated class B notes. The collateral comprises 81,510 auto receivables split between amortizing and balloon loans. The transaction is expected to price in the end of September. BNP Paribas is lead manager on the deal.

Also marketing last week was a Ä200 million lease securitization program for EuroLease Auto, a subsidiary of the Bulgarian leasing group Eurohold Bulgaria.

The deal, EuroLease Auto Finance EOOD, will be structured into a triple-B plus-rated senior note and a double-B plus-rated mezzanine loan. Deutsche Bank is lead manager on the transaction and EuroFinance, a member of the Eurohold Bulgaria group, has been named co-manager.

EuroLease is aiming to generate a leasing portfolio of 1.0 billion Bulgarian levas ($74 million) and to become a regional player in the leasing market for automobiles and small-load vehicles, according to market reports.

EuroLease Auto intends to replicate the structure of this initial deal in order to secure long-term financing for its other markets of operation, such as Romania and Macedonia, as well as Serbia and Russia, where the company has plans to commence commercial operations.

Securitization will provide the company the opportunity to become more price-competitive, increase its net interest margins, and strengthen sustainably its market position.

(c) 2008 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

http://www.structuredfinancenews.com http://www.sourcemedia.com/

For reprint and licensing requests for this article, click here.

More From Asset Securitization Report

European Primary Market Reopens amid Sovereign Turmoil

The issue of whether Greece will or will not default has yet to be put to rest. However, the securitization market proved its resiliency in the face of uncertainty as it opened up primary flow last month with a small bang. Benchmark issuer Volkswagen Leasing came to market with VCL 14, pricing shorter than two-year […]

Deals galore in European primary market

Primary market activity remained in the forefront last week with a number of deals pricing and an unrelenting pipeline that promises a busy run-up to summer. Secondary trading continued to be muted by primary volumes. Recent new issues were holding at or inside re-offer on the break, with little being seen on the offer side […]

Primary market still quiet on European front

Primary supply remained light last week with only a couple of deals roadshowing thus far in January. RCI Banque continued marketing the first floorplan securitization and a new CDO of ABS, Renoir I began roadshows last week. Market sources said that activity on the secondary front fared better with interest across all asset classes driving […]

European market begins its wind down

The market has not yet plunged into its seasonal slowdown – though it’s clearly approaching – as last week’s business was more about counting the post-August deals expected to emerge when the market returns from holiday. Analysts at Merrill Lynch said that spread direction following the lull is the key concern for market participants. Despite […]

European market sails into May

The May Day holiday across Europe slowed activity, but the market was far from a standstill. A number of deals priced earlier last week, and activity was expected to pick up again on Friday. According to market sources, the $1 billion equivalent RMBS issue for Delta Lloyd Levensverzekeringen was expected to price last Thursday but […]