Growth in European Structured Finance Market To Slow in 2002

Issuance in the European structured finance market continued to grow in the first half of 2002, albeit at a slower pace than in previous years, and is expected to continue its increase in volumes in the second half of the year, reports Moody’s Investors Service in its ‘First Half 2002 Review and Second Half 2002 Outlook’ for the European structured finance market. ‘In the first half of 2002, issuance in Europe’s structured finance market rose to EUR128.3 billion – a 17% growth compared with the same period in 2001 (EUR109.7 billion). However, this growth rate is considerably lower than the 76% increase in issuance attained in the first half of 2001 compared with the same period in 2000 (EUR62.5 billion),’ says Judit Seymour, VP/Senior Analyst and author of the report. Despite the global economic downturn and the continued credit decline among corporates, Moody’s expects Europe’s structured finance market to continue experiencing an increase in its volume of issuance in the second half of this year. ‘In fact, several large transactions across asset classes are due to close in the third and fourth quarters of this year,’ explains Seymour.

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