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Europe continued to see its primary securitization pipeline move toward recovery with strong issuance dominating the market in October.
Securitization analysts said that if the positive broader market technical backdrop persists, ABS should rally into year end.
"Markets continue their bullish stance," Unicredit analysts said. "The overall market tone is strong, and risk appetite is continuously increasing as liquidity is abundant, while yield has to be locked in."
Not even U.S. foreclosure problems have dampened expectations.
Additionally, investors' search for yield in the reasonably priced ABS market should continue to support the healthy European pipeline.
"In thinking about contagion risks into Europe, we believe the U.S. non-mortgage ABS market has become a far more meaningful benchmark for European ABS/RMBS and U.S. vanilla ABS has proved immune to 'foreclosuregate', thus far at least," Royal Bank of Scotland analysts said. "The question as to whether similar deficiencies in documentation exist in Europe is likely to be asked before long - any such discussion is outside the scope of this commentary, however we would point to the fact that mortgage lending and servicing businesses are regulated in Europe, in our view a...