Ten years ago, the European ABS market experienced significant distress. This lead to greater risk aversion for investors, which reshaped the lending practices on the issuer’s side. The European Central Bank (ECB), with the aim to revive the ABS market, reacted to this by increasing regulatory and surveillance activities to enhance transparency, restore confidence, and facilitate risk assessment. A cornerstone of ECB’s action plan was the establishment of a loan-level initiative, which posed a new requirement for loan-level data (LLD) disclosure for ABS transactions starting in 2013.
Watch the Interview with Petr Surala, CFA & Cesar Fernandez to find out more.