Market overview


Market overview

The European securitisation market comprises three segments:


  1. Public ABS
  2. Synthetic balance sheet securitisations
  3. ABCP/private


The market segments differ significantly in terms of volume, asset class, originator objectives, transparency and scope of disclosure.

In practice, the originator's objectives are initially paramount when selecting the transaction type. A strong financing effect is achieved through a true sale. When choosing between public ABS and ABCP securitisations, transaction size and fixed costs play a decisive role. If the focus is on risk transfer and regulatory capital relief for banks, the objective can usually be achieved more efficiently via balance sheet securitisation (synthetic).

Market segments in the European securitisation market

*EU -27 and UK

Source: TSI, own presentation

Good performance and public perceptions

Since the global financial crisis in 2008, securitisation has often been viewed critically in the public sphere. However, this broad perception is at variance with the positive and proven performance of European securitisations –- before, during and after the financial crisis. In contrast to the USA, Australia and China, the securitisation market in Europe has hardly grown since the global financial crisis.

The development of recent years therefore shows moderate growth in the European securitisation market - especially in comparison to the US market.

Public ABS - volumes placed in Europe


Source: BofA Global Research

While the European market has largely stagnated since 2008, the American market is already back at pre-crisis levels. The comparison with the US clearly illustrates the market potential that exists in Europe. If there is a change in public perceptions, securitisations can also make a contribution to the capital markets union in Europe.

Public ABS – volumes placed in the US


Source: BofA Global Research