KBRA UK (KBRA) releases research that provides insight into the types of transactions circulating in the European securitisation market, with a focus on Q4 2021.

European securitisation performance in 2021 was productive following a disrupted year due to the onset of the COVID-19 pandemic in 2020. European securitisation in 2021 reached a post-global financial crisis (GFC) high in terms of issuance sold and distributed to investors. New issuance (excluding refinancing, reset, reissuance, and retentions) totalled EUR115 billion. Additionally, when taking into account the EUR126 billion of retained transactions, market issuance reached a grand total of EUR241 billion in 2021. In Europe, transactions continue to be retained for liquidity purposes in refinancing operations, either with the European Central Bank (ECB) or other counterparties. In addition to the EUR114 billion of newly circulated volumes—mainly in the European collateralised loan obligation market (CLO)—there was an additional EUR39 billion in resets, EUR20 billion refinanced, and around EUR1 billion reissued. In this KBRA report, we provide insight into the types of transactions circulated in the market last year.

Key Takeaways

• European securitisation in 2021 reached a post-global financial crisis (GFC) high in terms of issuance sold and circulated to investors. New issuance (excluding refinancing, reset, reissuance, and retentions) totalled EUR115 billion.
• Resets in European CLOs were nearly equal to new issuance volumes in 2021, while refinancing (EUR20 billion) was the highest level since 2017.
• Total newly circulated volumes in 2021 excluding CLOs (EUR76 billion) was much higher than 2020 (EUR51 billion), but similar to the previous three years (EUR77 billion in 2019, EUR75 billion in 2018, and EUR83 billion in 2017). Of this, RMBS remained the dominant sector in 2021, at EUR37 billion.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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