Is the asset-backed securitisation (“ABS”) purchase programme, proposed by the European Central Bank (“ECB”), aimed at preventing economic deflation or at building confidence in a stuttering securitisation market? Or is it the European way to recapitalise banks? Or, is it a mechanism to prompt banks to intensify lending to SMEs and other parts of the “real economy”? Some would argue that it is meant to achieve all of these; some would be more optimistic than others. Mario Draghi, in his European Parliament address on September 22nd 2014, has provided important insights into what the programme will constitute when it is formally announced on October 2nd. Our Market Insight establishes whether it is likely to be enough to achieve the aim of having securitisation contribute to real economic growth in Europe.
This is a somewhat different type of Market Insight than you are used to. Rather than analysing a market development, we share with you some of our conclusions from the borrower and investor feedback we received in relation to our Project Finance Monitoring Advisory business. We examine why maintaining a transparent, efficient and effective reporting and decision-making framework is increasingly seen to be fundamental to balancing the needs of investors and borrowers.