A bespoke structured finance deal out of Germany
last month suggests the resurrection of Europe’s
securitisation market is well underway, and that it is
diversifying away from the traditional asset-backed securities
The £400 million ($617 million) asset-backed
financing (ABF) achieves the insolvency remoteness of a true
sale securitisation, yet enables the sharing of certain risks
between the originator and investors.
However its most striking feature is as simple as
its governing law. The originating bank is German, yet the
underlying pool consists of sterling-denominated mortgages over
UK property. In that situation, it is form to transact under
English law; but this deal used German documentation.
"It shows some return of trust in the sector," said Burkhard
Rinne, counsel at Linklaters which advised RBS in
co-structuring the deal. "It can get away structures with
assets in one jurisdiction that is governed by the laws of
another jurisdiction –...