As both the UK and EU progress with their respective securitization regulatory reform processes, it is crucial to get investors’ perspectives on how each jurisdiction’s process is going and whether it will achieve its goal of bringing in new investors to the European securitization market.
PGIM’s managing director and co-head of securitized products, Edwin Wilches, spoke with GlobalCapital’s senior European securitization reporter Tom Hall to give some insight into what investors are thinking when looking at these regulatory developments.
This interview could not have come at a better time, with the European Parliament’s Econ Committee voting on the parliament’s final position for its amendments to the Commission’s proposals to reform the Capital Requirements Regulations and Securitization Regulations.
There needs to be an incentive to enter the securitization market, or any disincentives have to be removed, to bring in more investors into the market and so encourage an increase in issuance.
Wilches highlights that although the trilogue period has not started yet, and it looks like there is plenty of time to reenergise the European securitization market, the world does not wait, and European economies must improve the system now if they are to make critical investments in defence and technology.
