The European structured finance market has taken such a severe battering over the last couple of months that it is today in a more fragile state than at any other time in recent history, according to Deutsche Bank.

In a research note yesterday on the European asset-backed securities market, Ganesh Rajendra, the bank's European head of securitisation research, said the deepening turmoil in the structured finance market has created "unprecedented disorder" that over the short term will likely keep investor demand for ABS "extremely weak".