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Home Articles European Irish Share of European FVC Market Rises to 27.6% in Q4

Irish Share of European FVC Market Rises to 27.6% in Q4

The number of vehicles in the European securitisation sector grew by 74 (1.7%) during Q4-2019, according to new data from the European Central Bank. Total vehicles had reached an all-time high of 4,396 by the end of the quarter.

The Irish share of this market rose from a revised 27.1% last quarter to 27.6% in Q4-2019. Ireland currently places second behind Luxembourg (28.8%) in terms of vehicle numbers.

Data for Q3-2019 was revised upwards by 21 vehicles due to revisions in the Irish FVC population stretching back several quarters where vehicles had previously gone unreported. This brought the estimate for Irish market share up from 26.5% to 27.1%.

Financial Vehicle Corporation (FVC) is the term used in European law for securitisation vehicles. These entities are engaged in the isolation of cash flows and transfer of risk via debt securities and are primarily different from other SPVs in that they do not engage in loan origination.

Data: Change in FVCs During Q4-2019 by Country; Source: European Central Bank FVC Statistics; Compiled by Atlantic Star Consulting

Ireland and Italy saw the highest amount of activity during the quarter, accounting for over half of new FVCs.

Irish FVCs grew by net 40 vehicles (3.4%) during the quarter to reach a total of 1,213 FVCs.

Italian FVCs rose by net 29 vehicles (3.9%) during the quarter, totalling 769 by quarter-end.

Although more Italian FVCs were launched, the net figure is lower due to more deregistrations/liquidations in Italian FVCs.

Data: Total European FVCs in Q4-2019 by Country; Source: European Central Bank FVC Statistics; Compiled by Atlantic Star Consulting

Growth in Luxembourg FVCs slowed during Q4-2019, as total FVCs rose by 15 (1.2%) from the previous quarter to reach 1,267.

The trend in recent quarters has been that jurisdictions with the highest amount of vehicle numbers have seen sustained growth, while jurisdictions with a smaller amount of FVCs have seen their market share fall.

Dominick Barrett
Dominick Barrett
Dominick is Managing Director of Atlantic Star Consulting.

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