Securitization in Spain: Past developments and expected future trends

The first securitization bonds were issued in 1993 and from 2000 the market exponentially expanded, contributing to credit growth and the development of a housing bubble. With the financial crisis outbreak, emissions dramatically decreased and regulatory attitude changed from a favorable position prior to the crisis to a punitive attitude intended to correct vulnerabilities. However, the credit crunch has led to a further change in regulators’ attitude towards the most simple and transparent structures. Thus, their importance as a funding mechanism is recognized and a more favorable treatment is considered. In this context, it is reasonable to expect that the European regulatory framework will be reviewed to revive this type of instruments.

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