Thankfully, bankruptcies of financial institutions which are also originators of consumer loan or residential mortgage backed securitisation transactions are rare. Why do we say “thankfully”? Aren’t securitisations “bankruptcy remote”, i.e., structures that can withstand a bankruptcy of the originator? They are indeed. But, in practice, originator bankruptcy has resulted in impairment to the value of noteholders’ securities and clear weaknesses have been uncovered in typical securitisation structures and the analysis and thinking that underpinned them. In this Market Insight we look at what lessons can be learned from the bankruptcy of DSB, a small Dutch consumer bank active in securitisation, and how this case might shape the securitisation market in the Netherlands – an active securitisation market post crisis.
Borrower push and investor pull: Will the European Private Placement market take off?
Ask any European CFO or treasurer what have been the salutary lessons from the credit crisis and their list will almost certainly include the need to move away from an over-reliance on bank funding. With private placements being hailed by many market commentators as part of the solution for companies seeking diversification of funding, we explore what can be learned from the US market, whether there is a need for a European private placement market and in which way a European market could evolve.
The case for “M&A pre-emptive” funding strategies
This year’s recovery in merger & acquisition activity is turning out to be U-shaped rather than V-shaped. Corporate acquirers are holding back due to a lack of confidence in their ability to bring a bid to a good, value-accretive end. Yet, this may still be the time when, from a price point of view, acquisition opportunities are at their best. In this Market Insight we consider acquisition pre-emptive funding strategies that can enable companies increase their confidence to pursue M&A opportunities notwithstanding challenges on the funding side.
Market Insight 22-09-2010 The case for “M&A pre-emptive” funding strategies
Results of our European securitisation investor survey: Let the sunshine in.
As the European securitisation market gathers in London this week for the annual industry conference, many participants will be wondering if the market is finally showing signs of robust recovery and if perceptions towards securitisation are normalising. In this Market Insight, we share our findings from our survey of 26 investors. It provides insight into evolving attitudes, investment appetite and market prospects for the next 12 months. The consensus appears to be moving towards optimism; so, befitting a pre-summer conference, we signal a call to the market to “let the sunshine in”.
New Issue CMBS – Is it an illusion?
Almost everyone in the market noticed the flurry of activity in new issue CMBS in both the US and this side of the Atlantic over the last couple of weeks. In this Market Insight we consider how these new issues differ from pre-crisis CMBS, the investor appetite, the stance of the rating agencies towards such deals, and what these new issues may signal to the market.
Market Insight 26-04-2010 New Issue CMBS – Is it an illusion?
Bank de-leveraging in practice – considerations for European corporates
The debate on the need for and scale of bank de-leveraging has been put firmly back on the agenda recently, and this time it has been driven by a combination of researchers, regulators and investors. In this Market Insight we consider recently presented analyses and suggest what corporate borrowers can do – and many are doing – to proactively manage their way through a de-leveraging bank market.
Market Insight 16-02-2010 Bank de-leveraging in practice – considerations for European corporates