The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

How will securitization shape up?

Questions abound over the future of the securitization business and the entire originate-to-distribute model.

Banks struggle to put their house in order ... before outsiders do it for them

What’s fair value in foul markets?



Cees Maas, IIF

Cees Maas, IIF: self regulation can work for securitization

Frédéric Oudea, chief executive at Société Générale, says: "A lot of firms will be refocusing finite human and capital resources on select business areas and groups of clients, and this may offer us opportunities to gain market share. We do not believe that securitization will come to an end and that the financing of companies and economies will go back entirely onto banks’ balance sheets. "We will carry on with securitization more as a client-driven financing offering rather than a transactional, arbitrage product. Partly for considerations of market perception, banks may run fewer vehicles only in select geographies. Structures will be simpler, with greater clarity on the underlyings. But these are merely adjustments to that business, rather than fundamental changes."

In its report, the IIF recommends that banks conduct the same level of due diligence and credit assessment on assets that they originate for future parcelling into securities and distribution as they would conduct on assets they intend to hold for a long period.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree