The securitization market has started to thaw, but many industry participants agreed that some of the more complex instruments, such as collateralized debt obligation squareds, might never return. Asset-backed securities from Lloyds Banking Group and Volkswagen were heralded as helping to reopen the market, but they were also considered to be "plain vanilla" deals. "We've gone from a time where everyone bought ABS and fought for every extra basis point through a knee-jerk period where you couldn't sell these deals at all. Now the debate about the future is becoming more reasoned and forward-looking," said Gareth Davies, JPMorgan Chase's head of European ABS research.

Related Summaries