Transatlantic securitization: taking off or final flight?

The GlobalCapital Podcast

◆ US RMBS sales in Europe: immigration or vacation?
◆ UBS AT1 makes nonsense of claims of investor fears
◆ The EU's last hurrah in the SSA market
Concorde and supersonic air travel may be the most famous things that were once yet are no longer transatlantic but the securitization market is another. Stringent regulations since the 2008 financial crisis have made cross-border business difficult. Relief came earlier this year when European regulators clarified what investors needed to do to hold overseas paper and since then business has started to flow.

But it was another, more recent financial crisis that really stimulated the revival. US banks pulled back from parts of their domestic RMBS market after the banking crisis of the spring. Issuers have therefore found a willing audience of investors in Europe. It seems to suit both sides of the trade but doing that business is not without cost. We explain what has been going on and assess whether or not it will last.

Another consequence of the banking crisis was the demise of Credit Suisse and the write-down of $17bn of its additional tier one (AT1) bonds. Some investors swore off the product as a result but this week, CS's new owner, UBS, built the largest ever order book for an AT1 deal. We discuss the reasons for the U-turn in sentiment and look into the deal pipeline.

Also in the pipeline is the last big euro SSA syndication of the year, due from the EU next week. We talk about what sort of market the EU will find when it brings its deal, and moreover, what it tells us about the full scale resumption of issuance in January.

If you thirst for more on securitization, track down Another Fine Mezz, GlobalCapital's weekly podcast dedicated to the market.