(1888PressRelease)
October 19, 2007 - Appia Capital is said to have released a report earlier this week in which Appia’s head of European securitization research, said total third quarter volumes had hit €84bn ($119bn) with a “paltry” €19bn of sales in September alone - some 60 %æ>–lÚ‰˜íompared to the same month a year ago.
At that level, he said volumes are at their lowest since the first three months of 2006 and that full-year sales are unlikely to surpass issuance last year.
This, he added, would mark “the first decline in annual volumes since the inception of the European asset-backed securities and collateralized debt obligation market.”
The €1.3 trillion ($1.84 trillion) European structured finance market, which comprises securitized products such as mortgage-backed bonds and more sophisticated CDOs, has recorded year-on-year growth in volumes over the last 17 or so years.
However, according to top analysts at Appia Capital, the turmoil over the last three-and-half months has cut right through investor demand for such specialist products, causing unprecedented disorder and issuance volumes to plunge.
###
