As the European Union’s securitization regulation reform draws closer, the market’s lobbyists must be asking themselves how sturdy the coalition favouring reform is. While Emmanuel Macron is a cheerleader of the changes, his power appears to be waning.
From that perspective, Polish institutions embracing the market will be a welcome sight, as Tom Hall reports this week.
Poland’s term as president of the European Council has just ended. From now until the end of the year, the post will be held by Denmark — a country that is generally seen as pro-covered bonds, leading to natural scepticism towards securitization.
Then it will be the turn of Cyprus, which could be supportive of securitization as, like Italy and Greece, it used it to clear NPLs from banks’ balance sheets. This process is entering a new phase, at least in Italy, as George Smith reports.
There’s a long way to go before it will be clear how much, if any, of all this will matter to the process of regulatory reform. But it can’t hurt to have securitization markets thriving in an increasing number of jurisdictions.
It's all been done before
Last week, we discussed the financing of Valencia’s stadium and Ferovinum’s wine and spirits deal. While the deals are exciting, to those who’ve been around the market long enough, they’re the same old asset classes.
To save you sleuthing through GlobalCapital’s archives, here are the stories on Nomura’s Champagne bonds and Arsenal’s stadium financing which we discuss at the start of the podcast.