Asset Back Finance Research: Future of securitisation in Europe

• The refinancing and placing of risk in the market by securitising receivables has come under heavy criticism in the wake of the financial crisis.
• Securitisation transactions have even been held partly responsible for the crisis.
• Nevertheless, the resurrection of securitisation markets is at the centre of current discussions
  to avert a possible credit crunch and hence to stop the economic recovery from being strangled.
• Against this background, the BearingPoint ‘Future of securitisation in Europe’ study
  throws light on a possible reorganisation as well as future opportunities of the European securitisation market.

Facts & Figures:

• A possible credit crunch can only be averted with a functioning securitisation market.
• The focus of future securitisation deals will be on receivables from the real economy, particularly leasing receivables, trade receivables and consumer loans but will no longer be on the repackaging of securitisation tranches.
• Securitisation will remain economically attractive, yet at much higher risk costs. In order to resurrect the securitisation market, transparency, standards and less complex transaction structures are required.