The amount outstanding of securitised loans – which account for most of the assets of euro area FVCs – decreased to €1,459 billion in the second quarter of 2011, from €1,483 billion in the previous quarter. Net transactions in securitised loans amounted to minus €27 billion in the second quarter of 2011. Net transactions of securitised loans originated by euro area monetary financial institutions (MFIs) totalled minus €23 billion in the same quarter.
Turning to the borrowing sector of the loans originated by euro area MFIs, securitised loans to households stood at €785 billion in the second quarter of 2011, with net transactions of minus €22 billion. Loans to non-financial corporations which were originated by euro area MFIs totalled €252 billion, with net transactions of €0.5 billion.
Holdings of securities other than shares
Euro area FVCs’ holdings of securities other than shares totalled €232 billion in the second quarter of 2011, with transactions amounting to a net disposal of €9 billion during the quarter. Holdings of securities other than shares issued by other euro area FVCs amounted to €35 billion. The latter provide an indication of “re-securitisations”, in which debt securities issued by euro area FVCs are held within the sector and may back new securitisations.
Debt securities issued
Regarding the liabilities of euro area FVCs, issuance of debt securities is the predominant funding source. The amount outstanding of debt securities issued by FVCs decreased to €1,845 billion in the second quarter of 2011, from €1,887 billion in the previous quarter. Over the same period, transactions amounted to a net redemption of €49 billion. The annual growth rate of debt securities issued, calculated on the basis of transactions, was -5.8% in the second quarter of 2011. This compares with a growth rate of -4.5% in the previous quarter.
