1. Restricting investor demand is the key constraint on market growth

Regulatory requirements in Europe restrict the range of securitised assets that EU investors can access compared with other major markets. A narrower investable universe limits diversification opportunities and suppresses investor demand, with further implications for issuance volumes and market depth. Expanding investor access was highlighted as an important factor in supporting a stronger and more resilient European securitisation market.

2. Prescriptive regulation reinforces stigma rather than reflecting risk

Highly prescriptive regulatory frameworks can influence how securitisation is perceived, sometimes reinforcing stigma rather than aligning with underlying credit performance. Despite demonstrating resilience in the post-crisis period, securitisation continues to face disproportionate levels of regulatory detail. A more principles-based approach was seen as a way to preserve transparency and safeguards while supporting investor confidence and participation.

3. Solvency II reform shows how regulation can unlock demand

Recent changes to capital treatment under Solvency II illustrate how targeted regulatory adjustments can affect investor behaviour. Improved alignment between capital requirements and risk has increased the relative attractiveness of senior securitised exposures for insurers. While further calibration may still be needed, the changes represent a positive step towards broader long-term participation from insurance investors.