The Dutch securitisation market is the comeback kid

Momentum in the Dutch securitisation market is already spinning up during this year’s first quarter, in contrast to last year’s listless landscape. Sjors Hoppenbrouwers, Director of the Securitisation & Covered Bonds structuring team at Rabobank’s Debt Capital Market department, provides a bird’s eye view of this new-found élan in the marketplace.

How did the Dutch securitisation market start in 2025?

It started with remarkable momentum. The first two months alone saw four RMBS transactions—three standard RMBS and one BTL RMBS. This sets a very different tone compared to 2024’s sluggish start.

How does this compare to last year?

The difference is stark. By this point in 2024, we hadn’t seen a single Dutch RMBS issuance. The entire year produced ten deals in the Netherlands, with just three of those being BTL RMBS. The contrast with our current pace is noteworthy.

What is driving this early activity?

We’re witnessing an interesting confluence of factors. There’s significant pent-up investor demand coupled with the quiet period at the end of 2024, which has left the market hungry for fresh issuance. Timing has been crucial in this resurgence.

How has investor demand been for these deals?

Exceptionally strong. Consider Delphinus 2025-I, which achieved final coverage of 2.4x. Green STORM 2025 reached an even more impressive 3.7x coverage. These are clear indicators of robust appetite. Investors are showing considerable enthusiasm for these offerings.

How does this compare to the broader European ABS market?

While our Dutch RMBS market is making this strong comeback, it’s worth noting that the broader European ABS market has already been on a record-breaking issuance streak since 2024. The Dutch market is essentially joining a continental trend that was already well underway.

What role did Rabobank play in these RMBS transactions?

Our DCM team at Rabobank acted as arranger for both Delphinus 2025-I and Green STORM 2025. For Green STORM 2025, we also served as green structurer, which marked Obvion’s 50th STORM transaction—quite a significant milestone in the Dutch securitisation space.

How did clients respond to these transactions?

They were decidedly positive. Both issuers expressed high satisfaction with the execution, which benefited substantially from the strong investor demand and the favorable market conditions we’re experiencing. Client satisfaction at this level indicates we’ve struck the right balance in our approach.

What are the key takeaways from these transactions?

The demand for Dutch RMBS remains robust—that’s the headline. We’re seeing new investors entering the market, which brings fresh capital, and attracts investors being enticed by higher spreads. Together, they’re driving these impressive coverage levels. The ecosystem appears quite healthy at present.

How have RMBS spreads evolved in early 2025?

The widening of Covered Bond spreads at the end of Q4 2024, which was a result of the Bund swap spread becoming negative, also had its impact on the securitisation deals. From a relative value point of view, you will see that investors typically demand a premium for RMBS over Covered Bonds, so with Covered Bond spreads wider, that also impacted RMBS, which were higher. Those RMBS deals were already some basis points higher than at 1H 2024, because of the record-breaking supply that the European ABS market had to absorb over the full year 2024 (with especially September and October being very active months in terms of supply).

So, to offer enough appeal to investors – and also to correct for a period of low supply, the first deals of 2025 had to offer wider spreads. Since the first RMBS transaction in January, we have seen – at the time of writing – RMBS spreads generally tightening with a few extra basis points.

How do Covered Bonds compare to RMBS in the current market?

While Covered Bonds remain the cheaper option, what’s noteworthy is that the spread differential has narrowed to its lowest level in two years. This is making RMBS a more attractive funding tool than it has been in recent history, though still not quite on par with Covered Bonds.

Did Green STORM 2025 benefit from its green bond status?

Without question. While STORM is already a well-regarded name in the market, the ESG label significantly broadened investor interest. We observed additional capital flowing in from dedicated ESG funds. The green factor is becoming a meaningful differentiator in the marketplace.

What are your thoughts on the EU Green Bond Standard (EU GBS)?

This is a development worth watching closely. Its success will ultimately depend on investor adoption. While many investors have established their own ESG frameworks, EU Taxonomy alignment is becoming an increasingly important factor in investment decision-making.

When can we expect the first RMBS in EU GBS format?

Once there’s clarity on minimum safeguards, EU Taxonomy-aligned deals could materialize this year. EU GBS transactions may follow, and this would also open the door for use-of-proceeds bonds rather than the typical collateral-based bonds we have seen so far. The market is poised for movement on this front, potentially before year-end.

What is the expected Dutch RMBS supply for the remainder of the year?

At Rabobank, we’re anticipating at least three more RMBS transactions and three BTL RMBS transactions based on refinancings assuming these deals are called. When we also include regular issuers to that, total Dutch RMBS issuance could reach at least 12 deals in 2025. That represents a substantial pipeline for the Dutch market.

Will RMBS issuance increase as it becomes more attractive versus Covered Bonds?

Not as a replacement, but as a complement—that’s the key distinction. Banks with Covered Bond programs—such as ING and Lloyds—have returned to RMBS to diversify funding despite its slightly higher cost. Covered Bonds remains the bigger market of the two, by a considerable degree. Strategic diversity in funding sources is the objective.

Why do issuers still opt for Covered Bonds over RMBS?

It comes down to flexibility and cost. Covered Bonds allow for longer tenors, are cheaper and require lower upfront investment. That said, RMBS can attract different investor pockets (also within the same investor), especially due to their floating-rate nature and provide valuable alternatives in volatile markets. It offers issuers a crucial alternative when Covered Bond markets face headwinds. Each instrument has its optimal use case in a comprehensive funding strategy. So especially for banks that have to attract a lot of funding every year, adding a securitisation tool next to a Covered Bond program can be beneficial.