Strong demand for asset-backed bond deals from Lloyds Banking Group and Volkswagen could signal a revival of securitisation markets in Europe. A positive response could also encourage other seuritisations, which would help liquidity in the broader economy. The VW deal, which was backed by auto leases, was viewed as a logical way to resuscitate the asset-backed securities market because such leases are standardised and short term. Lloyds' residential mortgage-backed securities deal, meanwhile, is seen as a positive indication that investors are more optimistic about the UK housing market.

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