New themes are here to stay

Asset-backed transactions are growing fast in Europe and are beginning to take off in other non-US markets. US volumes are unlikely to be matched but innovative structures such as NatWest's loan securitization and Bank of Scotland's retail mortgages have been devised that could be applied more widely. Jules Stewart looks at these and other recent developments.

Asset-backed securitization (ABS) took off in a big way in Europe last year, with the value of transactions soaring to a record $35.4 billion, roughly the level of the US market about seven years ago. Growth potential is still huge, especially as countries in Europe and elsewhere are beginning to put enabling legislation into place, but securitization teams don’t expect the boom to rival levels in the US, where issuance last year rose to $150 billion.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access