| Recent comments by ECB member Yves Mersche have suggested using ECB ABS eligibility criteria as a starting point to define "high quality" securitisations in a push to adjust the regulatory treatment of the asset class. |
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| Attempting to improve the flow of credit to the real economy, ECB members are targeting SME backed transactions as a useful tool to improve corporate conditions. Indeed the latest capital charges for insurers to hold securitisations has been halved by the European Insurance and Occupational Pensions Authority (EIOPA). Many are citing the new charge (reduced to 2.1% from 4.3% for AAA assets) as a catalyst to encourage insurers to invest in high quality securitisations – a much needed boost to the market. |
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| Mersch has been keen to underline the fact that not all EU securitisations are the same as most of the higher rated transactions have performed well during the crisis. |
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| “Looking at our book of over 200 structured finance deals, we have seen very few actual defaults,” said Laurence Griffiths, head of structured finance relationship management for U.S. Bank Global Corporate Trust Services. “Indeed most of the deals on which we act as Trustee have shown a high degree of resilience through the crisis.” |
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| The structured finance team at U.S. Bank Global Corporate Trust Services have extensive experience in the market, having worked in the securitisation space for over 14 years providing a range of corporate trust and agency functions to CLOs, ABS, RMBS and CMBS. |
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| “Although the securitisation market has faced challenges in recent years due to the introduction of alternative bank funding tools such as LTRO and FLS, we have continued to invest and hire new staff,” said Emma Hamley, VP of Business Development for U.S. Bank Global Corporate Trust Services. “We have worked on a number of CMBS deals recently such as Taurus and Debussy and we were also appointed on the first CLO since the crisis (Cairn Capital). U.S. Bank went on to finish 2013 with the leading market share in CLOs which is a real testament to the quality of service we provide.” |
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| “We certainly hope changes such as reduced capital weights can help revive the market and we are working with many of the key arrangers and originators to support new deals coming to market.” |
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For more information on recent transactions we have worked on, or further detail on how we can assist in a variety of structured transactions, please contact the team today or visit us online at:
usbank.com/corporatetrust |
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