Draghi, I love your way

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Draghi, I love your way

Olly Copplestone cartoon for GC Securitization light 13Sep24.jpg

◆ Draghi report gives securitization the green light ◆ EU ABS issuance overflows

Hosts Tom Lemmon and George Smith barely had time to come up for air this week thanks to the wealth of ABS issuance and the publication of Mario Draghi's report on the EU's competitiveness.

The former president of the ECB published his report for the European Commission and set out in rather more detail than before, how to revitalise the bloc's securitization market.

One market participant said to GlobalCapital, that reform was no longer a "pious hope" but that change was now on the horizon.

There are some concerns over whether the Liquidity Coverage Ratio will be included in the bits of the EU Securitization Regulation to be altered. To not so do, said one investor, would be like only allowing cars to be fitted with three wheels.

But overall, it is a further sign that the market could be freed from its regulatory chains sooner rather than later.

Back to the here and now and issuance for the year is set to break a post-global financial crisis record. And in large part, that is down to the amount of bank issuance. George explained the two key reasons why this is so and reflected on the frantic demand for southern European mezzanine notes in the last couple of weeks too.

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