More than 600 participants came to Berlin to attend the annual TSI congress, which opened its doors for the 13th time. The headline for this year’s conference was „ABS Reloaded: The opportunities for STS in troubled times".
For many years TXS has been an active and involved partner of TSI. In this capacity, TXS attended the conference with its own exhibition booth and several company representatives. As part of the panel „Green ABS ready to blossom? – Potentials and obstacles on the way to the European capital markets” Timo Menzel, Member of the Management Team of TXS discussed with colleagues from rating agencies and investmentbanks the opportunities for so-called „Green ABS“. One of his main observations were interesting initiatives driven by other markets (Covered Bonds) to develop “green” standards for products and transactions. Through its covered bond division TXS is member of the EeDAPP-consortium. For more information regarding this EU-Commission funded project pls. refer to:
https://eedapp.energyefficientmortgages.eu/
According to the conference organizer, the development and outlook of the Asset Based Finance markets have been discussed against the background of a challenging environment in the business cycle and ongoing regulation. Notable was the strong participation from institutions like BaFin, Deutsche Bundesbank, EBA, ESMA and ECB have contributed to the ongoing and constructive dialogue between issuers, investors and supervisory authorities. This gives confidence to successfully resolve the outstanding topics. Finally to summarise is to state that the new securitisation regulation and STS have been adopted by market participants to a reasonable extent, assuring successful issuance in main asset classes like auto and consumer ABS and RMBS.
One investor drew a straight to the point analogy:
„STS is HD but no age rating“
Certainly the new standard increases transparency. However, it is not a qualitative judgement regarding the risk potential of a transaction. A risk assessment according to one’s own standard is indispensable and musn’t be restricted by no means.
TXS GmbH is a TSI Partnerplus regularly getting involved by means of sponsoring conferences and other events for the benefit of the securitization market. In doing so, TXS seeks to contribute to the further promotion of the German and European asset based finance markets and is willing to pro-actively accompany its further development and enhancement.
