Deeper market, stronger demand: The impact of European ABS regulatory reforms

Reviving European growth means unlocking capital and as a result, Asset-Backed Securities (ABS) are back in focus, this time with positive regulatory tailwinds.

Mario Draghi’s September 2024 report on European competitiveness made it clear; easing regulatory burdens on ABS is critical to channelling more lending into the real economy.

Recent proposals from the European Commission, seen as the most significant since the global financial crisis (GFC), aim to overhaul the EU’s securitisation framework. It is expected to dismantle long standing barriers to entry for ABS issuers and investors alike, sparking optimism for a much deeper and more accessible European ABS market. As a result, banks and insurers are expected to emerge as major buyers of high quality, AAA rated ABS, facilitating growth of the market across the whole capital stack and generating a powerful boost to funding across the European economy.

Watch our latest European ABS webinar to gain a deeper understanding of how regulatory reforms are reshaping the European ABS landscape and fuelling investor demand.

Here some of the key topics we discussed during the webinar:

• Brief history on post GFC regulation and why Europe's rules hit ABS harder than they should have
• The turning point - overview on the proposed regulatory changes and why policy is shifting in favour of ABS now
• The potential impact of the reforms and expected growth of the market
• How TwentyFour are positioned to take advantage of this opportunity