Host and senior reporter George Smith this week welcomed Tom Hall back from an extended holiday in Australia, with our intrepid reporter having been gifted a didgeridoo to take back as a memento.
Of course, playing a didgeridoo requires a special technique known as circular breathing. Tom returned just as the optimists in the European ABS market reckon new issue primary is about to come full circle and return to March spread levels after April's tariff-driven widening.
Investors, especially, are pushing back on that narrative. If anything, many feel the market had been overdue a correction, so they would not feel that well compensated for risk if the predictions of the most bullish bankers materialised.
In any case, clearly this is a good time for issuers to make hay. With plenty of uncertainty on the way as the outcome of tariff negotiations remains unclear, despite present day market buoyancy, several are.
Among the highlights, UK deals from Paratus and Pepper tested the market and passed with flying colours last week, and Santander is now out with a jumbo consumer ABS that will provide a fairly rare view of exactly where sentiment sits for mezzanine paper in euros.
Most excitingly perhaps, Vantage is marketing the first-ever euro denominated data centre ABS. Unless something goes very wrong, it should be the first of many, given how securitization has proven its worth as an important route of financing for these assets in the US.
Finally, George and Tom discuss the latest in what can fairly be described as the ratings saga surrounding Bridgegate Funding. Fitch became the latest agency to slash ratings after acknowledging an error in its analysis – following in S&P's footsteps last year.