9/7/2026
While borrowing costs for some of Europe’s largest economies hit 15-year highs, the world of ABS acts as if it is blissfully unaware as the long-awaited Autumn rush began last week.
Four deals were priced, all in the pretty big to bigcategory of issuer, with deals from Lloyd’s Dutch RMBS shelf – Candide, RCI Banque’s Spanish Auto ABS Cars Alliance, yet another Red & Black fromSocGen, and Volkswagen hit screens with their third VCL of 2026.
All four issuers should be happy with their execution. RCI Banque found some of the tightest sub-triple-A prints in Spanish Autos for a number of years, while Lloyd’s Candide managed a €250m upsize at an aggressive triple-A spread in the mid-40’s. Red & Black Germany had one of its best efforts in a few years, with investors unperturbed by the Italian version pricing just a few days before. Finally, VCL 49 once again hit the tightest spread of the year in German Auto, matching its May VCL 48, and fashioning a last minute upsize as well.
It’s easy to say that these deals (and the Red & BlackItaly before them) are evidence of how getting into the market early, even in late-August is the way to go around this time of year. And while that’s probably true for the bigger issuers like Lloyds, VW, SocGen etc. it’s likely not an option for the less-established players. Indeed, the euro market this week has yet another Auto ABS from Santander and a French Prime RMBS from BPCE.
As for sterling, it’s a slightly different story. The UK market will reopen fully for the first time since the end of July, led by Newcastle Building Society’s prime RMBS, a few BTL and non-conforming RMBS trades, a credit card ABS from Capital on Tap, and yet another Volkswagen Auto.
If the euro start is anything to go by, all issuers will beexpecting strong performance to kick off the rush.
We’re expecting more deals to be announced today, and our very own Matt De Bergolis, CEO of Concept ABS, reckons the pipeline of eight fully offered trades means this is set to be the busiest week since Concept ABS was founded way back in 2007. It’s a lot of deal commentaries to write up,that’s for sure.
And as I write, two more new issues have just begun marketing... buckle up!
In total for VW, that's just under €3bn of triple-A paper at 42-43bps for VW in 2026. Beat that.
Volkswagen Leasing (Germany) has come to the market for the third time this year with another Prime STS German Auto ABS out of its ubiquitous VCL programme. Marketing alongside a competing German deal from the Red & Black brand, a Spanish auto, an Italian auto and jitters more broadly in bond markets, there were plenty of hurdles to overcome. But the benchmark German auto issuers, of which Volkswagen is surely one, have a habit of laughing in the face of danger of late... click here to read the full overview on Concept ABS.
With ex-CLO placement hitting E43bn in anticipation of the post-summer market reopening, Euro sales are all but certain to deliver yet another post-GFC record year. Although consumer loan product is noticeably increasing its market share, auto ABS continues to be the dominant asset class – the E18.1bn sold YTD already at c.70% of the full year total for 2025 with three of the busiest months of the year yet to come. Indeed, the immediate post-summer pipeline has been dominated by auto product – no fewer than four deals (including Red & Black Germany) jostling for attention in barely a week.
Spreads remain strong across the board. Indeed, last week's Italian Red & Black auto from SocGen reopened the market post-Summer with a sublime result ... click here to read the full Market Context on Concept ABS.
© 2026 ARC Risk Models Limited
