When GlobalCapital and Afme came together for this year’s annual securitisation roundtable, the topics were similar to last year – but the tone was much more positive.
Nationwide’s pioneering Sonia-linked deal showed the sterling market that investors would buy the new benchmark, and Afme invited the building society’s secured funding head, Krishan Hirani, to share his thoughts and lessons from the deal. Since the discussion in mid-May, the transition has only accelerated, to the point where, as the market meets in Barcelona, it’s unlikely to see a sterling consumer issue without a Sonia coupon.
The new Securitisation Regulation, which came in early this year, has been far from trouble-free – but some of the biggest problems with the rules were solved, and many issuers have already adopted the “Simple Transparent and Standardised” designation. Christian Moor, senior policy advisor at the European Banking Authority, was also able to join us, and offer his thoughts on the future of the market. Further out, we discussed the potential for securitisation, as the market with the closest connection to underlying assets, to help drive the sustainable finance agenda forwards. If that happens, securitisation will have completed the transition from villain to hero – and next year’s roundtable, and Global ABS 2020, should be more positive still.
Owen Sanderson,
June 18, 2019
