DBRS Morningstar Releases European Structured Finance 2019 Year in Review Commentary

DBRS Ratings Limited (DBRS Morningstar) released a commentary summarising key trends in Europe’s structured finance market last year. Overall, 257 new structured finance deals were issued in 2019. The year started off slowly because of uncertainty regarding the European Simple, Transparent, and Standardised securitisation regulation and pull back from quantitative easing. However, issuance picked up in the second half of the year and ended with issuance totalling EUR 216.7 billion, in comparison with EUR 235.9 billion of total issuance in 2018. The United Kingdom remained the dominant region and residential mortgage-backed securities was once again the most prominent sector in terms of issuance.

This commentary provides an overview of the deals we rated in the UK, the Netherlands, Spain, Italy, Ireland, and Portugal; notes interesting market trends in those countries; and highlights some of the most popular research we published last year.

Some highlights from the commentary include
-- Discussion surrounding the UK’s first Sterling Overnight Index Average-linked (Sonia) transaction and Sonia’s entrance into the market as an eventual Libor replacement.
-- Perspective as to why there was dramatic decrease of Dutch issuance in 2019 and our forecast for Dutch issuance in 2020.
-- Green bond market developments around Europe, specifically in Spain, Ireland, and the Netherlands.
-- Updates on nonperforming loan (NPL) issuance in Italy and our viewpoint surrounding Hercules, the planned asset protection scheme to reduce NPLs in Greece.

The commentary is available at www.dbrs.com. For more information, visit www.dbrs.com or contact us at [email protected].

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