Post by Rud Pedersen Brussels

In the latest article from our Financial Services newsletter, Financial Focus, Alan Houmann, Senior Adviser, explains how securitisation has remained a “taboo” topic at EU level, particularly since the financial crisis. In “Europe’s Securitisation Taboo”, he explores how Europe has treated securitisation primarily as a risk to be contained, while the US has continued to use it as a financing tool. In the US, securitisation markets have helped fund major infrastructure, data centres and clean energy projects, while Europe’s market remains small, fragmented and heavily bank-dependent. The European Commission has proposed reforms to reverse this trend, including measures to revive the market by lowering capital charges. However, while this is a welcome first step, much more remains to be done. To learn more about the current state of EU securitisation, read the full article below.