Two Comebacks and a Pull-Back: Credit Card ABS, Insurance Tier Two and SSA Bonds

The European credit‑card ABS market, dormant since the 2008 crisis, is showing a clear revival. 875 billion) book. These issuances target the near‑prime, or “underserved,” consumer segment that specialist lenders such as New Day have dominated since 2015. By establishing a master trust, the banks gain a diversified funding line that can complement deposit financing and potentially lower their cost of capital.

At the same time, insurance companies are flooding the eurobond market with tier‑two regulatory‑capital issues. Nine major European insurers—including Generali, AXA, BNP Paribas Assurances, and KBC’s insurance arm—have priced bonds in the past few weeks, a pace unseen in years. Their motivation stems from a yield‑centric funding model: insurers care about absolute yields, not just spreads, and anticipate further rate hikes after the Iran‑related market shock.

Consequently, many have accepted modest new‑issue premiums, while others, like Mapfre’s €500 million (≈ $540 million) issue, have kept size limited to preserve order‑book strength. The twin trends reshape European securitization dynamics ahead of the Global ABS conference in Barcelona, where market participants will debate fraud risk, funding diversification, and the future of public‑sector pricing. Investors now face tighter pricing on both credit‑card ABS and insurance tier‑two bonds, prompting careful assessment of credit quality and liquidity. As rate expectations remain volatile, issuers that can balance size, pricing, and timing will likely secure the most favorable terms, while the conference offers a platform for networking and strategic insight into the evolving landscape.