The European securitization investor psyche can be pretty hard to access given the limited opportunities they currently have. But as the market gears for a recovery, tailoring deals to the buyers' needs is the key to their success.
"The problem in Europe is the investors' ability to assess risk," said David Covey, EMEA securitized products research director at Lehman Brothers. The remarks were made at the analysts' roundtable at last week's Information Management Network's and European Securitization Forum's Global ABS conference. "The liquidity and stability they sought is no longer available, and investors need to look at the market from a more risk/reward type of analysis. We aren't there yet," Covey said.