27 Jul 2015
Webinar on securitisation
In our webinar on Monday 27 July, Frédéric Hache, Head of Policy Analysis at Finance Watch, will explained what securitisation is all about.
Watch the recording of this webinar:
Amongst the many different actions planned within the Capital Markets Union (CMU), the revival of securitisation is its main initiative and is likely to be the first to see a regulatory proposal.
In our webinar on Monday 27 July, Frédéric Hache, Head of Policy Analysis at Finance Watch, explained what this financial technique is all about.
In our view, securitisation in principle is neither good nor bad, it is just a method to help transfer credit risk and obtain funding. However the term encompasses a wide range of structures, some of which are more problematic than others. But instead of promoting the right ones – namely truly simple, standardised and transparent securitisation – CMU may end up promoting some structures with very complex features such as so-called “tranching”, without properly aligning interests. The lessons from the past crisis seem not to have been learned.
Frédéric showed why some of the reasons put forward to justify this plan are questionable, and why a sound framework for simple securitisation will not impede competitiveness but rather build investor confidence and contribute to its success.