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).

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.

Debt certificates issued by Dutch SPV's

In the first quarter of 2010, Dutch SPVs issued new debt certificates to the value of EUR 40 billion gross. The majority of the securities issued, however, served as a replacement for previously issued debt certificates. This mainly had to do with restructuring. For instance, a number of existing SPVs were combined for efficiency reasons. In this operation, the new SPVs issued debt certificates and those of the existing SPVs were repaid. In addition, previously issued debt certificates (which served as collateral) were replaced by new securities, which were sold to investors. Besides these specific repayments, a sizeable securitisation programme was also wound down. As a consequence of all these repayments, outstanding securities of Dutch SPVs in the first quarter of 2010 only increased by EUR 3 billion net (See Chart).