Since the introduction of mandatory Financial Vehicle Corporation (“FVC”) reporting across the EU ten years ago it is possible to get a better picture of the levels of activity for European securitisation vehicles over time and the most favoured jurisdictions for the location of FVCs involved in Securitisation transactions.
The total new issuance of European securitised product in 2019 was €223 billion, the lowest annual volume since 2016 (€180bn) and 25% less than 2018 (€268bn). Source AFME.
Reporting of FVC statistics began in the first quarter of 2010 for the reference period end-December 2009. Statistics are published on a quarterly basis by the European Central Bank, and central banks across Europe collect the data from reporting agents on a quarterly basis. The quarterly data provides details of the types of securitisation transactions, the Euro value of assets and liabilities by European jurisdiction and the numbers of individual tranches issued from each vehicle.
ANALYSING THE DATA
Taking the data as at 31 December 2019, which is ten years on from the first data collection point, it is clear to see that two jurisdictions account for more than half of the securitisation FVCs across Europe, those being Ireland and Luxembourg.