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. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Securitization: Banks start to shift retained ABS

In 2008 securitization in Europe had a record year, with €711.3 billion of issuance – but practically all of it was repoed with the central banks. Experts agree that around €1 trillion of issuance has been retained in Europe since the onset of the crisis, €500 million of which has been repoed (the remainder staying on balance sheet). The UK’s SLS scheme extended to £185 billion by the time it closed in January.

While the European Central Bank has been tightening its criteria and raising haircuts, several other forms of state support are being curtailed and the SLS scheme itself expires in 2011. Talk of a return to a fully functioning securitization market is premature until banks are not only issuing publicly but are also refinancing this backlog of retained issuance.

There are now signs that European banks are starting to take advantage of improved sentiment to sell off some retained exposure. "We are getting the sense that some issuers that launched triple-As and retained them are now selling them to investors in small private deals," says one trader. In recent weeks both Dutch and Spanish banks have been in the market with such trades.

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.


Unlimited access to and

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


Unlimited access to and, 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


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