Securitisations are loans (or credit risks) bundled and sold on to SPVs, which finance them by issuing debt certificates, such as asset-backed and mortgage-backed securities, covered by these loans. As a result of the credit crisis, the public securitisation market ground to a halt in the autumn of 2007, because investors were no longer interested in these securities. Since then there has been a lot of securitisation for liquidity purposes, though. Banks largely bought the SPV-issued securities themselves to use as collateral against Eurosystem loans. As of the fourth quarter of 2009, some recovery set in and debt certificates were being sold again to investors by SPVs, for the greater part mortgage-backed securities.
Featured statistic: EUR 347 billion
Date 13 July 2010
Dutch Special Purpose Vehicles (SPVs) engaging in securitisations at the end of the first quarter of 2010 had EUR 347 billion of debt certificates outstanding (See Chart).