Innovative techniques for funding

摘要

Not long ago, European mortgage originators relied almost entirely on retail deposits and the issuance of senior unsecured debt for funding their mortgage loans. The increasing adoption of securitisation techniques since the 1990s, however, has gradually changed that. Today, only 60% of mortgage debt in the region is financed through retail deposits and rating agency Standard & Poor's (S&P) expects issuance of European residential mortgage-backed securities (RMBS) this year to reach a new record. The agency estimates that in the first six months of the year, volumes had already reached ?102.65bn, well in excess of the ?88.93bn for the same period in 2004.