Europe’s ABS Market Boost Hinges on Inducing Insurers to Buy
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Europe’s push to promote asset-backed securities hinges on persuading insurers to buy the debt by easing capital requirements, investors and analysts said.
European Union and global regulators recently proposed criteria for identifying simple and transparent securitizations that could qualify for preferential regulatory treatment. While the EU insurance law known as Solvency II already offers capital relief for “high-quality” securitizations, investors say it’s not enough.