French Structured Finance Market ‘Should Continue Healthy Growth’

The French structured finance market has experienced a very active first half of 2002 and is set to continue its healthy growth 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 French structured finance market. ‘In the first six months of 2002, the French structured finance market transferred EUR27.2 billion worth of credit risk (when including ‘obligations foncieres structurees’ and the large Horizon deal) – representing a 154% increase over the first half of 2001 (EUR10.7 billion),’ says Herve-Pierre Beauchesne, Moody’s Senior Associate and author of this report. In fact, Moody’s notes that, excluding Horizon, 45% of credit risk was transferred to investors through the issuance of notes, while credit default swaps represented the remaining 55% of transferred credit risk. According to Moody’s, Collateralised Debt Obligations (CDOs) and derivatives again overshadowed other asset classes, accounting for 72% of the total transferred credit risk, with EUR19.6 billion of credit risk being transferred through eight deals.


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