*Europe, UK and Australia stay quiet *Secondary picks up

Secondary rebounds

In recent weeks, the European and UK ABS and MBS secondary markets have been relatively quiet. However, a European ABS trader notes: “Activity picked up this week due to earlier-than-expected primary market issuance.”

The increased activity in the primary market typically helps stimulate the secondary market. The trader explains: “The positive aspect is that this will provide fresh data points, particularly in terms of volatility.”

He also highlights that refinancing pricing has been a favourable factor, signalling positive conditions for investors seeking to refinance their debt.

Overall, the trader describes the secondary market as balanced, stating: “Last week was dominated by buyers, but this week has seen more selling interest from investors, resulting in a more even distribution between buying and selling flows.”

In August, the market experienced a spread correction, with spreads slightly widening. “This was an expected outcome of a quiet summer market,” the trader says.

Looking ahead to September, the trader anticipates that investors will return to the market with more liquidity. “This is due to numerous interest payments that occurred around August 20, which will likely drive increased activity in the secondary markets,” he comments.

Primary

Europe/UK

The week ends in quiet.

The visible European new issue pipeline looks like this:

Australia

Today, no market levels were observed.

The visible Australian new issue pipeline looks currently like this:

See SCI’s International ABS Deal Tracker for more.

See SCI News’ article recently published: Rock-solid July for primary ABS market | Asset back securities (ABS) | Structured Credit Investor

Selvaggia Cataldi