European ABS market grows in line with expectations

The European ABS market grew by 15% in the first half of 2006, according to a report by HSBC published yesterday. This year-on-year growth was in line with expectations. The market now stands at €177bn.

Within the ABS sector, RMBS continued to account for the lion’s share of volume, at 54%. The market was buoyed by a strong performance in Italy, where RMBS issuance was up by half. UK non-conforming RMBS (a sub-prime category) also grew by 42%, counterbalancing a disappointing showing by prime UK

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