BARCELONA - For first-time European issuers, the primary objective of securitization is funding, followed by capital relief, according to preliminary results of a PriceWaterhouse Coopers survey of originators in the market.

As well for these issuers, a working relationship is key. Only 7% of respondents cited all-in cost as the most important factor in selecting arrangers for a securitization, with 45% citing personal relationships as the leading factor dictating arrangers, and price the second-leading factor.

"You've got to work with someone you're not afraid to lift the phone to," said Kevin McGovern, senior dealer at the Nationwide Building Society.

The need for data management among first-time issuers can be overwhelming, for example, mortgage transactions will require "hundreds of pieces of data" from zip codes to borrower credit scores to historical performance data, said Jacob Grotta, vice president for structured finance at Wall Street Analytics Inc.

Added David Barton, head of structured finance at West Bromwich Building Society, "The amount of data is almost frightening at times that you need to record." Barton said the need for placement of front-end procedures was a hard lesson learned for the first deal he went through.

More than half, or 52%, of issuers said they needed to make "significant changes" to their IT structures in order to accommodate securitization, while 48% did not. On the other hand, a larger amount of European issuers did need to make changes in IT structures - at 67% - in order to accommodate regulatory changes to investor reporting requirements.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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