Irish securitisation numbers reach new high

The number of Irish domiciled securitisation vehicles have reached a new high according to figures from the Central Bank, as the industry starts to stabilise

In the first quarter of 2015, the number of financial vehicle corporations (FVC) increased to 779, the highest level since FVC reporting began in Q4 2009. The largest increase was in commercial mortgaged backed securities (CMBS).

“This growth in FVCs is a sign of a stabilisation in the Irish FVC industry, as investors return to the securitisation market seeking higher returns in the current low yield environment,” the Central Bank said.

The value of Irish FVCs rose by € 13.3 bn to €414.5 bn, as inflows were mainly driven by increases of € 3.7 bn, € 3.2 bn and € 2.5 bn in deposit and loan claims, securitised loans originated by non-euro area residents and other assets, respectively.

Across Europe, euro assets fell by € 35 bn to € 1,827 bn, mainly driven by outflows out of securitised loans originated by euro area banks of € 30 bn. As a result, Ireland grew its share of Euro area assets from 21.7 per cent in Q4 2014 to 22.7 per cent in Q1 2015, with Ireland “remaining one of the favoured jurisdictions in the euro area for the incorporation of FVCs”.