The American International Group downgrade, coupled with the recent troubles at MBIA, has raised concerns over the possible ramifications for the European markets if a monoline insurer were to take a ratings hit.

"On our count, monolines have guaranteed just over 5% of triple-A public issuance in the European securitization market since the mid-1990's," said researchers at Deutsche Bank Securities. "Ambac and MBIA dominate. We note that many of the wrapped deals barely fit the textbook definition of a securitization - think project finance and U.S.-style revenue bonds instead."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.