Redemptions reducing ABS outstandings

The first half of 2011’s strong ABS new issue volumes reflected how fast outstanding issues were amortising, Barclays Capital analysts said in a note published this week. "In fact, they [amortisation cashflows] dwarf new issuance volumes to such an extent that they cannot only easily explain demand in the primary market, but have also resulted in further shrinkage of the volume of outstanding European ABS bonds."