With 2006 drawing to a close and yet another record year of European securitization issuance expected, the market has definitely grown up. Analysts say that maturity can best define the European securitization market in 2006.
"After several years of financial experimentation, during which ABS was looked on, by many, as an exotic technique, or was not fully justifiable from an economic point of view, 2006 saw securitization become a fully-integrated funding tool," Societe Generale analysts said. "In 2006, securitization as a funding tool has been integrated within most bank asset sectors. Project finance and private equity businesses will likely also rely on securitization in 2007."