Rating data support case for ABS

摘要

The latest data on the soundness of the European structured finance market strengthen the case for a revival of asset-backed securities in the region, with the rolling default rate falling to its lowest level in four years and downgrades reaching a five-year low at the end of 2013. Figures posted by S&P back up arguments by the ABS industry and central bankers that securitisation represents a fairly safe and steady product in the post-crisis investment universe, and thus deserves better regulatory treatment and support. The cumulative default rate between mid-2007 and the end of 2013 is just 1.54%, versus 18.7% in the US.