Asset securitization is a modern finance technique, originally developed in the USA and increasingly finding use in Europe. Asset Backed Securitization in Europe sets out the legal and regulatory framework and tax issues of asset securitization in Austria, Belgium, Denmark, Finland, France, Germany, Great Britain, Greece, Italy, The Netherlands, Norway, Spain, Sweden, and Switzerland. The book is unique in providing an in-depth coverage of the legislation in all European countries where asset securitization plays a role. As ABS transactions often have international aspects, The book will be a useful source of reference since it covers the most important jurisdictions in Europe.
Formerly an exclusively US finance technique, asset securitization is gradually gaining ground in Europe. The extent to which this technique has been introduced and developed in European countries varies, depending on economic and legal or institutional factors. Asset securitization is defined as the process of transferring certain receivables, such as bank loans, credit cards, receivables, or trade receivables from their owner to a separate entity which in turn issues and sells such securities representing interests in such receivables. After a description of the term, The situation pertaining to a number of legal and regulatory issues in five European countries is depicted. Finally there are a few observations of a more general nature which conclude this twentieth edition of Forum Internationale.
Small and medium-sized enterprises (SMEs) account for a disproportionate share of output and employment in Europe but are still highly dependent on bank finance, which dried up or became prohibitively expensive during the crisis. Broader access to alternative, long-term finance through securitization would limit their exposure to banking sector difficulties and thus help revive credit. The SDN examines the various impediments to the development of a well-functioning and liquid securitization market in Europe and proposes a comprehensive multi-faceted strategy to support its development through regulatory reforms and infrastructure development together with targeted and time-bound official sector support. This would require (i) greater regulatory differentiation between securities of different quality and underlying asset structures; (ii) harmonized national enforcement and insolvency frameworks and standardized reporting requirements; and (iii) greater capacity of EU authorities to support new issuance. These measures would be underpinned by a pan-European definition of high-quality securitization (HQS) comprising simple, transparent and efficient asset structures receiving preferential regulatory treatment.
The first comprehensive account of the European structured financial products market This comprehensive survey of the securitization market in Europe covers all asset-backed securities (the major classes and some nonconventional asset classes that have been securitized), residential and commercial mortgage-backed securities, collateralized debt obligations, and more. Frank J. Fabozzi, PhD, CFA, CPA (New Hope, PA), is the Frederick Frank Adjunct Professor of Finance in the School of Management at Yale University. Prior to joining the Yale faculty, he was a Visiting Professor of Finance in the Sloan School at MIT. Moorad Choudhry (Surrey, UK) is a Vice President in Structured Finance Services with JPMorgan Chase Bank.
Improve your firm's European structured finance operations with this in-depth analysis of the most popular structured finance instruments in use today, including collateralized debt, mortgage-backed securities, as well as whole-business and synthetic securitizations. You'll find how others have found the greatest successes in the European market, which is equivalent in maturity and scope to those of North America. You'll get specific practical insight you can use right away, like how to take advantage of regional legal structures that make it possible to develop structures and add features not possible in other regions.
A complete guide to securitization. * Analyzes leases, tax liens, and other new securitization markets developing globally. * Contains exercises and examples taken from real transactions. * Companion CD-ROM includes calculation tools and examples, data for models, ongoing updates on models, and Q&A with authors to address complex securitization questions.
Seminar paper from the year 2006 in the subject Business economics - Investment and Finance, grade: 1,0, Pforzheim University, course: Corporate Finance, 24 entries in the bibliography, language: English, abstract: Almost all companies do have an effective debenture management nowadays. Nevertheless, it is not unusual for companies to have very high values in receivables. Especially for companies with a turnover of more than 100 million the receivables grow to a value of 10 million or more (IKB (2005), p.1). This capital is usually unavailable for the company; it may become available using Asset Securitisation to refinance the receivables. The influence of Basel II on the behaviour of credit institutions further reinforces the importance of Asset Securitisation as a tool for companies to improve the capital costs and the balance sheet rations as the investigation in this paper will point out. This again has implications for the rating of enterprises. Due to the growing interest in Asset Securitisation, a lot of research has been done by the European financial institutions. In the second part of this paper, the question of a definition and of the basic structure of an Asset Backed Security will be examined. Furthermore the requirements for an Asset Securitisation in respect to the portfolio of assets will be explained. The third part of this paper is concerned with the possibilities of traditional ABS for companies, that are carried on by the advantages and disadvantages of Asset Securitisation for the participants. Within structured finance the questions of adding value for the different participants within structured finance transactions is examined. In the forth part the possible use of structured finance products for enterprises is described examining especially the question of where value is added. Finally the last part gives an overview of the current situation of the European market for structured finance products and ABS and its projected developme
The discussion in this note seeks to preserve the beneficial features of securitization while mitigating those that may pose risks to financial stability. A comprehensive set of reforms—targeting both supply- and demand-side inefficiencies—will be needed to put securitization back on a sound, growth-supportive footing. The note departs from others in proposing a broad suite of principles applicable to various elements of the financial intermediation chain. After indentifying where policy makers have already made progress, we then propose measures to address remaining impediments to the rehabilitation of securitization markets. We also encourage more consistent industry standards for the classification of risk (albeit applied at a granular rather than overarching level). Finally, we introduce various initiatives that could aid in fostering the development of a diversified non-bank investor base for securitization in Europe.
