The first ever German credit card ABS is open for bids.
Advanzia Bank is selling the deal via ABN Amro, Bank of America, ING, MUFG, and Natixis, with pricing expected this week.
Historically, the German securitization market has been almost entirely formed of auto ABS, the majority of which is from a handful of issuers. Covered bonds are still preferred to RMBS, but ABS in the country is starting to diversify.
Advanzia’s deal adds another asset class. Auxmoney priced its eighth consumer ABS in March from its Fortuna shelf. Enpal launched its solar ABS shelf in late 2024 and returned with a second trade last year.
There’s more in the private markets. Last year, Ratepay and UniCredit agreed on a €125m warehouse for buy-now, pay-later loans. Fortress struck a forward flow deal for a portfolio of residential sale and leaseback agreements earlier this year.
While there are also banks using the cash securitization market for significant risk transfer on their consumer loan books, much of the diversification is coming from fintechs, for which Berlin is a significant hub.
The growth of the German market matters in the effort to reform Europe’s securitization rules. Covered bond issuing countries are often sceptical of securitization, but it will help soften that resistance as securitization carves out its own niche. Indeed, German politicians have been a crucial part of pushing the latest reforms to the top of the agenda.
The biggest prize in Europe would be opening up a significant RMBS market. That still looks unlikely, but ABS at least is getting more vibrant.
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