European banks need liquidity, and ABS –
with a few tweaks – can provide it.
Here’s how to revive the ailing
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
|What is needed to revive
Europe’s securitisation market?
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,...