With virtually no regulatory uniform, the slate of European government-related securitizations (see ASR 12/03/01 p.1) that left its imprint on the record-breaking volumes of 2001 continue to be indecipherable in terms of risk weighting; but even more importantly, without any direct guarantee attached to past issues, the question arises, how state-related are these deals?

"Most of these deals that we have seen to date should not even be called government debt because they are not," explained one analyst. "You would have to call all bank deals, bank deals' and that would have to include RMBS and CDOs [because] at the end of the day these are either securitizations of consumer debt or corporate debt. The state-related deals are not very different, as they either securitize consumer or corporate debt and sometimes may benefit from a government undertaking."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.