Given the way the securitization market has dissolved over the past 14 months, the industry needs to make a case for why securitization is needed, said a senior official of Britain's Financial Services Authority (FSA) at Information Management Network's second annual European CLOs, Structured Credit Products, and Credit Derivatives Summit held in London last week.

The official said that the industry needs to make the case that securitization indeed delivers economic benefits, and that this case needs to be made much clearer if the industry is ever to regain its footing. A clear issue with a market that was hugely liquid and then became illiquid is that any form of rebirth must establish a more stable pattern of liquidity and price stability.

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