Securitization in the Global Marketplace 2020
Welcome to Securitization in the Global Marketplace 2020.
In more normal times, this would be the time of year the securitization market convenes in Barcelona, kicking off three days of deal making, networking and tapas. Unfortunately, 2020 had other plans.
As many market players are working remotely, apart from their colleagues, peers and counterparties, we believe it more important than ever to keep information flowing and to bring European and US securitization professionals the most up to date and relevant views of their markets.
Securitization in both Europe and the US has been through the most trying three months since the 2008 crisis, navigating a host of challenges in both corporate and consumer credit as a result of the coronavirus pandemic. But these markets have shown a level of resilience and adaptability that has surprised many observers. Far from the total shutdown of securitization markets following the Great Financial Crisis, securitized assets in this period rebooted after just a short pause to take stock and identify the path forward.
For instance, CLOs: in both the US and in Europe, the market came to a halt briefly as volatility in leveraged loans intensified, but it was only a short break, and by April, both markets had reopened, bringing deals tailored to the unique risks of the moment. Our chat with BNY in this report highlights these themes, and we shine a light on the evolution of the space in the Covid era, particularly in Europe.
But even with the ability of some sectors to adapt to the current moment, the future is highly uncertain and many events over the coming months will be entirely outside of the market’s control. Questions are consumer credit and employment, for example, are a top source of concern in both the US and Europe.
The challenges of this era are highly unique, but not insurmountable, and some of the highest hurdles have already been cleared. The market made an unprecedented and nearly seamless transition to remote working, partly the result of years of contingency planning in the wake of other crises. There has also been a tremendous commitment to keeping markets functioning, from trading, to deal execution to legal services.
In this report, you will find insights into CMBS, RMBS, ABS, CLOs, RMBS and NPLs in both geographies, with our journalists homing in on the unique themes and challenges for each sector. It is our hope that you take away from this report a better understanding of the issues facing these markets and from that, a heightened ability to steer your businesses through whatever the market has in store for the coming months.
This report also features the results of GlobalCapital’s annual US Securitization Awards. We would like to thank all who took the time to participate in the polling and every firm that prepared a pitch presentation.
We would like to wish all of our readers a safe, healthy and enjoyable summer.