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 Cookiesbefore 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: Return of the living dead

Proving that higher spreads, the annihilation of half of the investor base and a global recession can’t keep a good product down, securitization has returned to Europe. Louise Bowman investigates.

THE OBSERVATION THAT markets have short memories is a cliché that is hard to refute. But the extent to which those in the industry are prone to selective amnesia still has the power to shock. "I was asked to buy a deal recently and told the broker that I had not yet read the prospectus," an investor told Euromoney in October. "He looked at me in amazement and said: ‘Why would you want to bother doing that?’" Shaking his head in disbelief the investor added: "The question I have been asked the most over the last week is: ‘Is it 2006?’" What is perhaps most baffling about this anecdote is that the investor was buying asset-backed securities. This most tainted of asset classes, having been dealt a near fatal blow two years ago, was supposed to have cleaned up its act. Having been given a painful lesson in the shortcomings of buying on rating rather than credit analysis, those ABS investors that did not disappear along with the ABCP conduits and structured investment vehicles are meant now to approach what is left of the market with a new sense of caution and control.

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?