GlobalCapital’s securitization editorial team has made two trips to Bishopsgate in two weeks to take the temperature of things — first for S&P’s European Structured Finance Conference on September 3, and then braving the Tube strikes for TwentyFour Asset Management’s Fixed Income Summit on Tuesday.
The tone was good at both events. Meanwhile, the host of deals in the public market are heavily oversubscribed and being priced tightly. It seems European securitization's primary market is unbothered by recent escalations in geopolitical tensions and more political turmoil in France.
Issuers clearly feel they have the space to be bold, with debut issuers, new assets and multi-jurisdictional deals all coming to market.
If one thing could upset the positivity, history suggests it could be overcrowding in the primary market.
There is always a busy September pipeline, and investors can only handle so many deals at a time. Anecdotally, some may have added a little bit of capacity for this year, but it still feels like things could seize up if the number of active trades spends too long in double figures.
As Tom Hall says on the podcast this week, syndicates have so far done a good job of shepherding supply through, and there is more time to get things done this year without the US election constricting timelines.
Perhaps more reason for optimism, but time will tell.