Banks Establish the Dutch Securitization Association
November 20, 2012
The Dutch financial sector has established the Dutch Securitization Association (DSA), according to a release from the organization today. The members of the DSA include Dutch banks and insurers.
The DSA aims to contribute to the market's improvement since a well-functioning securitization marketplace is key to funding Dutch mortgage debt as well as fueling the country's housing sector's health, the release further stated.
The organization wants to help the securitization industry by offering transparent and standardized information to buyers, rating agencies and regulators. According to the DSA's release, in the last two years, via a project started by Holland Financial Centre (HFC), Dutch ABS issuers have been working closely together with investors and other stakeholders to establish a way transparency can be improved and complexity be limited in Dutch deals.
Based on market feedback, the DSA was established and a voluntary standard for Dutch securitization offerings was introduced.
Additionally, a Web site called www.dutchsecuritisation.nl will be launched. This will have all relevant information on Dutch securitization. The DSA's release said that is a unique initiative within Europe meant to help in developing a "healthy and internationally competitive position for Dutch securitization transactions."
The release also mentioned that the Prime Collateralised Securities (PCS) initiative was recently announced in Europe. The purpose of the PCS is to introduce a European quality label for securitizations. DSA's members fully support this European initiative and they believe that steps can be taken specifically in documentation and investor reporting. The association's release also mentioned that the Dutch standard will be the first one to qualify under PCS as a ‘Domestic Market Guideline.’
However, the DSA's member issuers have decided not to participate for now in another European initiative called the European DataWarehouse. This will contain loan-level data on European securitizations including RMBS, CMBS and SME offerings provided by the Continent's issuers and banks. These firms have disagreed with how the warehouse was set up and the charging of the fees.
In a short note about the DSA's creation, Standard & Poor's analysts said that a movement to differentiate European securitizations in terms of quality and transparency is positive for investors.