At a time when incoming EU financial services regulation threatened to squeeze the life out of struggling securitisation markets, the Association for Financial Markets in Europe wanted to write a white paper to present the case for balanced regulation. The white paper needed to make the case in a way that would appeal to all readers – even those without a financial services background. We worked with AFME staff to make the case for appropriate regulation of Europe’s securitisation markets, at a time of growing political support for this asset class. While regulation treated Europe’s securitisation markets as if they had similar performance to the US securitised assets that helped to precipitate the financial crisis, in fact their performance had been much stronger, reflecting a more robust underlying asset base.
In addition to fine-tuning and strengthening the message, we suggested interviewing ‘real economy’ stakeholders, developing case studies showing how securitisation contributed to jobs and growth. For example, we showed the benefits of securitisation to Germany’s car manufacturers and their supply chain. We also researched how much funding an improved securitisation environment might release into the EU economy. The white paper was widely quoted in the press at a critical time in the securitisation debate. It was distributed at AFME’s annual Barcelona conference and was well-received by AFME’s members.