Securitisation: the big picture in 2019
Five views on the resurgence of the securitisation market
The global securitisation market has undergone extensive transformation over the past decade as regulators around the world have sought to reform and encourage the rebuilding of a sector that was central to the global financial crisis. A revised and enhanced regulatory framework, with greater transparency and simplicity, is breathing new life into what were often complex and opaque structures. Investor confidence is slowly returning, and banks are better placed to free up capital for further lending. Besides the traditional credit risk securitisation investors have also favoured securitisations in the form of repackaging of other asset classes.
While the asset-backed securities market remains far below pre-crisis levels, it has become more active in recent years, with outstanding European market securitisation assets worth €1.21 trillion in mid-2018, compared with €8.46 trillion in the US. Market growth has been largely driven by solid credit performance and investor confidence that securitisation vehicles no longer contain the ‘toxic waste’ that helped to bring the financial industry to its knees in 2007-09. With a clearer vision and a sharper focus on the need for simplicity and transparency a new style of securitisation vehicles is emerging.
Read on to hear views from our partners on the current state of play in the securitisation market or download the factsheets below.
The big picture
Our experts cover the key areas of securitisation you need to know.
