POLL: saving EU securitisation

Author: Lizzie Meager | Published: 24 Aug 2015
European banks need liquidity, and ABS – with a few tweaks – can provide it. Here’s how to revive the ailing market
What is needed to revive Europe’s securitisation market?
By connecting banks with the capital markets, securitisation offers an effective way for them to share risk and gain liquidity. For some time, these possibilities have been overshadowed by the slicing, dicing and repackaging of non-conforming, risky home loans that contributed to the global financial crisis. In the post-crisis years, all underlying asset classes, regardless of quality, were tarred with the same brush.

That line of thought is now changing. But while most agree that the asset class's reputational crisis is more or less over, the European market remains stagnant. Having peaked at €819 billion ($893 billion) in 2008, issuance last year reached just €216 billion.

Twelve months ago, European Commission President Jean-Claude Juncker called for a revival of sustainable,...