One of the primary reasons that the European securitization market has failed to fully recover since the financial crisis is that banks have been retaining the few deals that they issue to use as collateral for cheap borrowing from the European Central Bank (ECB). This is particularly true for lenders in peripheral countries such as Italy, Spain, Portugal or Ireland.

But in recent months some banks have been re-marketing these deals to other investors. Initially this was because spreads on these securities have tightened. Since November, there has been another incentive: the ECB’s asset backed securities purchasing program (ABSPP), in which the central bank buys a portion of the senior tranches of retained deals outright and encourage market investors to join them

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