Italian health care receivable ABS has become a major asset class. According to a Standard & Poor's report, some eight deals totaling about 3 billion ($3.7 billion) have been brought to market since 2003. With several deals in the making and investors having more money to put to work, the deal pipeline is swelling.
Under the terms of a typical health care securitization structure, the debtors are the regional healthcare units (HCU) termed aziende sanitarie locali in Italian. These units have built up a considerable amount of commercial debt. Although the Italian regions are not legally responsible for an HCU's debt, they are ultimately accountable for health care services on their territories, and have tried to address the liquidity problem by providing their respective HCUs with support.