Securitisations involve bundling of loans extended to households and businesses, which are then packaged and sold as bonds through dedicated securitisation firms. In the Netherlands, securitisations serve as a source of funding for residential mortgage loans, especially for banks. They grew sharply from 2000 onwards. Following the outbreak of the credit crisis mid-2007, securitisations were not or hardly sold to other investors, as trust in these products had been compromised.
Outstanding amount hits record low not seen since 2010
Following a rebound in 2018, the outstanding amount of securitisations placed with external investors fell back again in 2019. The volume of Dutch securitisations went up down EUR 6.6 billion (-13.3%) to EUR 43.0 billion in 2019 (see Chart 1). The majority (89%) involve residential mortgage loans.