How Bilkreditt PCS first could bring back European securitisation

Author: Gemma Varriale | Published: 12 Dec 2012

The first asset-backed security trade to attract the Prime Collateralised Securities (PCS) label was closed last month. Here’s how it could reinvigorate European securitisation.

Bilkreditt 3, which is also the first public Norwegian auto securitisation issued, was awarded the PCS label on November 28.

Sponsored by the Association for Financial Markets in Europe (Afme) and the European Financial Services Round Table, the PCS initiative is the industry’s effort to reboot the securitisation market in Europe. The label is intended to be a hallmark of quality, reassuring investors that a PCS deal is simple and transparent.

“The hope is that people embrace it and it becomes a feature of the market,” said Andy Vickery, the London-based structured finance partner that led the Linklaters team advising the joint lead managers on the deal. “It will help to eradicate some of the old...