European leasing companies have been turning more and more to the securitization market, according to a recent report by Moody's Investors Service. Italy is the most active participant in this sector, accounting for an overwhelming 80% of all transactions made.

According to Moody's, what makes it interesting is that the majority of Italian lease-backed offerings that have come to market thus far have been backed by a portfolio comprising of several sub-pools. The sub-pools are usually made up of a combination of auto vehicle, equipment and real estate assets, each of which carries different characteristics and risks to be analyzed. Additionally, they have also largely comprised financial lease contracts, rather than operating leases. This is why they are referred to as multi-pool financial lease-backed transactions. Moody's recent report explained the methodology employed by the rating agency for this type of deal.

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