While the securitization market throughout continental Europe benefited in its early stages from relatively few regulatory guidelines, countries such as Italy have since developed laws addressing specific areas of securitization. In the UK, the problem is not with the ABS-specific legislation itself, but rather the issues that float around these laws.
"If you look at what is coming out in the UK, the structures are much less innovative," said one market source. "The government is deemed as frowning upon innovation. In other countries there is a stronger lobbying effort; the problem here is Whom do you lobby?' There is a long range of political bodies that must be considered, all of which might have conflicting interests. But ABS is one of the few markets that is really opened at the moment, particularly when it comes to infrastructure. It's one of the huge things that is going on aside from workouts."