
European securitisation reaches highest levels
While the report said tighter fiscal policy and anticipated interest rate hikes at the European Central Bank (ECB) this year might hurt growth as spreads narrow, the lower minimum capital requirements under Basel II to offset risks taken out against higher-grade securities should bolster the take-up of CMBS and CDOs as banks implement the new capital adequacy rules.
“Markets are continuing to anticipate the lower capital requirements for senior tranches of securitisation and CDO transactions when Basel II is implemented,” said Rick Watson, managing director and head of the ESF in London. “In addition, credit performance remained generally good [so] the combined effect resulted in an attractive spread environment and continuing need by investors to put their money to work.”
Fourth quarter issuance volume also established a new quarterly record of €135.7 billion, with 85% of transactions in the period coming before the ECB raised interest rates in the eurozone by 25 basis points on December 6, its first rates rise for 18 months.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Central banks
Regulation
French regulator questions need for share trading equivalence
Esma’s reinterpretation ahead of Brexit reduces need for equivalence system, says AMF official
Receive this by email