On 13-15 June 2023, the European securitization industry gathered in Barcelona for the 27th edition of the Global ABS conference. With the expansion of market products on offer and updated regulation coming into force in the near term, there is expected to be plenty of opportunities and long-term growth for securitization as a funding tool. The Baker McKenzie securitization teams across Europe have put together the following ‘key takeaways’, based on our discussions with market participants, general sentiment and some excellent panel sessions.
With LIBOR set to be discontinued on a permanent basis, corporate service providers and corporate trustees must transition to alternative rates before the phase-out begins at the end of 2021. Bearing this challenge in mind, we, at Baker McKenzie, needed to streamline the re-papering process for our clients. We needed to create an end-to-end solution that provides the right balance of legal expertise, legal project management and technology.
The pace of digital transformation has been accelerating worldwide. As part of this continued growth trajectory, the use by corporates of data centres has become essential. The COVID-19 pandemic has given an additional boost to the expansion of the digital economy, as businesses adapt to home-working and additional data needs. Planning for an increasingly digital and innovative future will rely not only on the existence of appropriate infrastructure but also on the ability of market participants to access it.
The pace of digital transformation has been accelerating worldwide. As part of this continued growth trajectory, the use by corporates of data centres has become essential. The COVID-19 pandemic has given an additional boost to the expansion of the digital economy, as businesses adapt to home-working and additional data needs.
The simple, transparent and standardised (STS) regime under Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 (EU Securitisation Regulation) has enabled a more risksensitive prudential regulatory treatment for certain European Union (EU) institutional investors investing in securitisation, including credit institutions and insurance companies.
As a result of Brexit, the EU Securitisation Regulation will be ‘onshored’ by The Securitisation (Amendment) (EU Exit) Regulations 2019 (Securitisation Onshoring Regulations), which seek to adapt the EU Securitisation Regulation to UK domestic law, creating a British version of the EU Securitisation Regulation (UK Securitisation Regulation) that is set to apply in the UK after 11pm on 31 December 2020, the time and date marking the end of the Brexit transition period (TP End Date).
Progress on the reform of LIBOR has not stopped during the COVID-19 pandemic.
While the overall timing for LIBOR transition has remained unchanged, the Working Group on Sterling Risk-Free Reference Rates (RFRWG) has recognized the need to introduce some flexibility in relation to the interim transition deadlines to ensure that lenders are able to continue to supply credit to the real economy and assist with economic recovery.
The financial markets are experiencing a significant amount of disruption for which there is no precedent. However, in these difficult times it is important that originators, sponsors and securitisation special purpose entities (SSPEs) do not lose sight of their regulatory obligations under Regulation (EU) 2017/2402 (Securitisation Regulation). This short briefing…
It is still too early to predict the full impact of COVID-19, but it is clear that we are faced with a period of major disruption for which there is no precedent. Alongside the immense human cost, businesses are suffering sudden and unanticipated loss of revenues as a result of…
The safeguards being put in place globally to address the spread of Coronavirus have required many people to work from home and have severely restricted contact between individuals. This raises a number of practical challenges in the execution of documents. Corporate Trustees are particularly affected as they are often required…