€25.6billion of the €40.4billion in European securitisation issuance during Q3-2019 had the highest possible rating of ‘AAA’, according to new data from the Association for Financial Markets in Europe (AFME).
Issuance with a rating of at least ‘A’ accounted for 85.3% during the quarter, while a further 7.0% was unrated.
During the first three quarters of 2019, AAA-rated issuance accounted for 68.8% of total European securitisation activity.
This is up from 53.3% of issuance rated AAA during 2018, and 47.8% in 2017, indicating that the collateral quality of new securities appears to be improving markedly.
Issuance of BBB or lower rated issuance was at 5.7% during Q3-2019, which is a lower rate than FY2018 (6.7%) but broadly in line with previous years.
European issuance in 2019 has been running far below that in 2018, with €133.5bn issued during the first three quarters of 2019 versus €181.1bn over the same period in 2018.
Issuance activity tends to pick up in Q4 of each year, so all eyes will be on the Q4-2019 data once it is released by AFME. European Q4-2018 issuance was €88.6bn, well above the average of €60.4bn in the first three quarters of the year.