While synthetics typically dominate the German securitization landscape, for some time now market players prompted by the continuing regulatory changes have predicted that going forward executing funded ABS should be much easier to accomplish.

The latest topic to support a rise in funded securitizations is the elimination of interest sub-participation in German deals. The proposed change was released as part of the BAKred checklist for German credit institutions that buy protection via synthetic securitizations in April 2002. It will be implemented sometime early this year.

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