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:
For Professional Investors only. 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. PGIM, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training.
PGIM operates in the provinces of Alberta, British Columbia, Nova Scotia, Ontario and Quebec pursuant to the international adviser exemption from the requirement to register as an adviser under securities laws.
In Canada, pursuant to the international adviser registration exemption in National Instrument 31-103, PGIM, Inc. is informing you that: (1) PGIM, Inc. is not registered in Canada and is advising you in reliance upon an exemption from the adviser registration requirement under National Instrument 31-103; (2) PGIM, Inc.’s jurisdiction of residence is New Jersey, U.S.A.; (3) there may be difficulty enforcing legal rights against PGIM, Inc. because it is resident outside of Canada and all or substantially all of its assets may be situated outside of Canada; and (4) the name and address of the agent for service of process of PGIM, Inc. in the applicable Provinces of Canada are as follows: in Québec: Borden Ladner Gervais LLP, 1000 de La Gauchetière Street West, Suite 900 Montréal, QC H3B 5H4; in British Columbia: Borden Ladner Gervais LLP, 1200 Waterfront Centre, 200 Burrard Street, Vancouver, BC V7X 1T2; in Ontario: Borden Ladner Gervais LLP, 22 Adelaide Street West, Suite 3400, Toronto, ON M5H 4E3; in Nova Scotia: Cox & Palmer, Q.C., 1100 Purdy’s Wharf Tower One, 1959 Upper Water Street, P.O. Box 2380 - Stn Central RPO, Halifax, NS B3J 3E5; in Alberta: Borden Ladner Gervais LLP, 530 Third Avenue S.W., Calgary, AB T2P R3.
Prudential Financial, Inc. of the United States 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 on this website is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In making the information available on this website, PGIM, Inc. and its affiliates are not acting as your fiduciary.
The parties confirm that it is their express wish that this Agreement, as well as any other documents relating thereto have been and shall be drawn up in the English language only. Les parties aux présentes confirment leur volonté expresse que cette convention, de même que tous les documents s’y rattachant soient rédigés en langue anglaise seulement.