Securitisation is back

Author: | Published: 1 Sep 2009

Elizabeth Fournier
Staff writer

Securitisation is returning to the UK, but the battle scars it sustained during the downturn are plain to see. Certain areas, particularly mortgage-backed deals, are pretty lifeless, though Barclays looks set to try to challenge that trend soon. Others, utilities deals in particular, have proved buoyant. What companies are learning is that to succeed, deals must be transparent, clearly structured, and involve potential investors at every stage. This may be unsurprising. But it also means complicated new structures are being developed to deal with new demands; innovation isn't opportunistic, it's necessary.

The trend for increased investor participation continues across the US and Asia, though under very different circumstances. In the US, little is happening outside the government-sponsored programmes, whereas in Asia it's a lack of liquidity that is stalling deals, not a lack of confidence. With both transparency is the priority, with uninterrupted cash flows and highly...