ABBREVIATIONS IV

EXECUTIVE SUMMARY V

1. INTRODUCTION 1

1.1. WHY SECURITISATION MATTERS FOR EUROPE TODAY 2

1.2. PURPOSE AND STRUCTURE OF THE STUDY 4

2. SECURITISATION AND THE REAL ECONOMY – SECTORAL USE CASES 5

2.1. HOUSING FINANCE – SCALING UP MORTGAGE AVAILABILITY 5

2.2. SME FINANCE – BRIDGING THE STRUCTURAL FUNDING GAP 6

2.3. INFRASTRUCTURE FINANCE – CROWDING IN LONG-TERM CAPITAL 8

2.4. CAPITAL RELIEF AND CREDIT MULTIPLICATION 9

2.5. IMPLICATIONS FOR GROWTH, INCLUSION AND THE CLIMATE TRANSITION 10

3. MARKET DEVELOPMENT AND INSTITUTIONAL LANDSCAPE 13

3.1. HISTORY AND CURRENT MARKET PERFORMANCE 13

3.2. INVESTOR LANDSCAPE 22

4. INTERNATIONAL PERSPECTIVES – WHY THEY MATTER 27

4.1. THE US SECURITISATION SYSTEM – SCALE AND STRUCTURE 27

4.2. THE UK SECURITISATION MARKET – REGULATORY DEVELOPMENTS AND LESSONS FOR THE EU 31

4.3. INTERNATIONAL CASE STUDIES 34

4.4. WHAT THE EU CAN LEARN 37

5. BARRIERS TO SECURITISATION 40

5.1. LEGAL AND INSTITUTIONAL FRAGMENTATION 40

5.2. SUPERVISORY AND REGULATORY BARRIERS 41

5.3. CULTURAL AND MARKET TRUST ISSUES 43

5.4. LEVEL PLAYING FIELD, COMPETITIVENESS AND REGULATORY LEAKAGE 44

6. COMPLEMENTARITY 46

6.1. COVERED BONDS 46

6.2. SYNTHETIC SECURITISATION 50

6.3. PUBLIC GUARANTEE SCHEMES 50

6.4. PRIVATE CREDIT AND ALTERNATIVE LENDERS 52

6.5. GREEN AND SUSTAINABLE FINANCE 52

6.6. ECB LIQUIDITY-PROVIDING OPERATIONS 53

7. CAPITAL UNLOCKED, LENDING MULTIPLIED – A QUANTITATIVE SCENARIO 56

7.1. HOW SECURITISATION TURNS INTO LENDING 56

7.2. BASELINE CONDITIONS AND CURRENT BOTTLENECKS 57

7.3. SCENARIO SET-UP AND ASSUMPTIONS 58

7.4. CAPITAL FREED AND NEW LENDING 59

7.5. SENSITIVITY OF RESULTS 61

8. POLICY RECOMMENDATIONS 63