EU securitisation reforms: scale, recalibration and market access | Insight Investment

“The direction of travel is clear: policymakers increasingly recognise that securitisation can play a larger role in financing Europe's economy and mobilising private capital.”

The EU’s proposed securitisation reforms could represent the most important overhaul of the market for a long time. Four key areas under negotiation are capital treatment, the definition of public securitisations, UCITS investment limits and investor sanctions.

If implemented effectively, the reforms could broaden investor participation, improve market liquidity and support higher issuance across Europe. However, the ultimate benefits will depend on whether the final rules strike a practical balance between simplification, transparency and investor protection.