Securitization: any flavour but vanilla

The European securitization market used to be characterized by small, esoteric deals rather than the large standardized issues dominant in the US. Things are changing, but not towards the US model. Strategic securitizations to finance M&A, synthetic structures and deals to cover non-performing loans are fuelling investment banks’ enthusiasm for the market. Michael Peterson reports

Author: Michael Peterson

Take a look at the volume of asset-backed bonds issued recently and you could be forgiven for dismissing securitization as the runt of the international capital markets litter. According to Capital Data, some $27 billion-worth of European asset-backed bonds were issued in the First half of 2000, roughly a quarter of the volume of European corporate bonds issued in the same period. And unlike corporate bond issuance, asset-backed volumes have not grown since last year.

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