Just two years back, telecom receivables were hailed as the harbinger for European corporate securitizations, though the sector's implosion has stymied activity.

Leverage has become the focal point for telecoms, and market participants are looking at ways to address it. Peter Plaut, managing director and head of European credit research at Banc of America Securities said, "Rating agencies only give modest credit to asset securitizations and at some point you loose the cash benefits that help in producing modest cash flows. It's certainly not an effective method for long-term debt reduction because it's not fundamentally attacking the problem. At the same time you end up giving up future benefits."

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