This year was going to beat 2019 for securitisation issuance in Europe before the pandemic hit, Morningstar claims.
Its analysis of the European securitisation market said 2020 was “steadily ahead of 2019” at the start of the year but this reversed in April and May.
Morningstar said this was unsurprising but predicted activity will resume.
“The question will be what happens ahead as we head into the summer and fourth quarter of 2020,” the report said.
“As the market and economy emerge out of lockdown, the potential for growth remains positive.
“June showed some of that potential, making up some of the lost ground.”
The research said there has been an increase in consumer loan securitisations during the second quarter with the rest broadly distributed between residential mortgage-backed securities and auto asset-backed securities.
The research predicted that the Netherlands and Ireland are on pace to finish the year with higher issuance levels than those seen in 2019.
It said the UK remains a dominant region but has experienced a slowdown.
Securitisations have been a popular route for peer-to-peer lenders such as Funding Circle and Zopa in recent years.