The GlobalCapital team discussed two kinds of awakening giants on Another Fine Mezz this week — a run of enormous deals from European banks in the ABS market, including the first consumer deal from Barclays and a mortgage deal from NatWest, and the possibility of insurers returning at scale to buy triple-A rated CLO paper after the European Commission’s proposal to amend Solvency II was adopted last month.
The publication of the podcast was delayed by a day because on Monday, George Smith and Tom Hall returned to The Landmark in London for the SLF 2025 conference.
A good range of European issuers and investors were present, though the event tends to lean towards the UK market given its London location.
People were worried — in order of diminishing importance — about fraud in the US, the UK Budget on Wednesday, and the Financial Conduct Authority’s consultation on motor finance.
However, as was the case at the UK mortgage conference in October, the big picture remains that there is more cash looking for assets than there are assets to buy. Spreads are tight and lenders have taken advantage of the conditions to build up headroom, including heavy use of pre-funding in the public markets.
It has created a few interesting dynamics to unpack, so look out for further coverage on GlobalCapital Securitization in the coming days.