PGIM recently responded to the European Commission's (EC) targeted consultation on the functioning of the EU securitisation framework. This paper reflects the views within our submission to the EC.
Expanding access to funding sources and credit are critically important objectives as Europe seeks to maintain its competitiveness in the global economy. The securitisation market can facilitate this credit expansion by connecting consumers and businesses in need of financing with global investors who are keen to diversify portfolio exposures. In doing so, securitisation can help fund the real economy and strengthen Europe's financial stability by decreasing its overreliance on the banking system.
Unfortunately, Europe's securitisation market is not in a state to meet the current or future needs of its economy. It is now only 17% of the size of the U.S. market (down from 85% pre-GFC), annual issuance only comprises 0.3% of European GDP (vs. 2.6% for Australia, 1.2% for the U.S., and 0.7% for the UK), and the market size has been dwarfed by Europe’s own covered bond market.
We are confident that regulatory reform can contribute to the rebuilding of Europe’s securitisation market, thereby enhancing the global cohesiveness and competitiveness of Europe’s capital markets. The process of reviving Europe’s securitisation market would also allow European financial intermediaries to increase and diversify their funding sources, rationalise balance sheet risks, and deploy capital more efficiently.
This website is intended for $role located in $region. Please set your preferences.
*Required Fields
Sorry based on your current selections, you cannot continue. Please update your selections or visit pgim.com/multi-asset-solutions for more information.
This website uses cookies
PGIM appreciates your trust and respects your privacy. We use cookies to improve your experience. You can manage your cookie settings and learn more about how we protect your information at the PGIM Privacy Center .
PGIM appreciates your trust and respects your privacy. We use cookies to improve your experience. You can manage your cookie settings and learn more about how we protect your information at the PGIM Privacy Center .
Which cookies would you like to accept?
This field is required.
By continuing on to PGIM.com you are agreeing to the following:
(ex-Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM))
If you do not agree with the terms and conditions of this disclaimer or the website, do not utilise the website.
Within the UAE, this website is only accessible in the UAE, excluding the distinct financial services jurisdictions of the financial free zones of the UAE, namely the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM). This website is only accessible to a limited number of exempt investors who fall under a of the category of “Professional Investor” as defined within SCA Chairman Decision No. (13/RM) of 2021 on the Rulebook ofFinancial Activities and Mechanisms for Adjusting Positions.
All investments involve risk, including the possible loss of capital.
This website is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect of any products or services to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence.
PGIM is the principal asset management business of Prudential Financial, Inc. (PFI), and a trading name of PGIM, Inc. and its global subsidiaries.
PFI is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom.
PGIM, the PGIM logo and Rock design are service marks of PFI and its related entities, registered in many jurisdictions worldwide.
The information contained in this website does not constitute and should not be construed as an offer of, invitation or proposal to make an offer for, recommendation to apply for or an opinion or guidance on a financial product, service and/or strategy. Whilst great care has been taken to ensure that the information contained in this website is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. You may only reproduce, circulate and use this website (or any part of it) with the consent of PGIM.
The information contained in this website is for information purposes only. It is not intended for and should not be distributed to, or relied upon by, members of the public.
The information contained in this website may contain statements that are not purely historical in nature but are “forward-looking statements”. These include, amongst other things, projections, forecasts or estimates of income. These forward-looking statements are based upon certain assumptions, some of which are described in other relevant documents or materials. If you do not understand the contents of these materials, you should consult an authorisedfinancial adviser.