Regulation turns Spanish buyers off ABS, survey shows

By Joseph McDevitt
24 Jan 2014

Spanish investors showed a preference for covered bonds and other bank debt over securitizations, blaming punitive regulation as the main factor turning them off European structured finance, a survey by Bank of America Merrill Lynch has revealed.

Around 60% of buy-side respondents are no longer investing in non-Spanish ABS, MBS or CLOs and 40% have stopped buying Spanish ABS, MBS or CLOs. The majority, at 57%, blamed the regulatory environment for their exit from securitization, while another 20% said it had some impact on their ...

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