Last but not least, there have been a handful of initiatives aimed at rekindling the continent’s markets in securitised products. These include the European Commission’s efforts to establish a framework for simple, transparent and standardised (STS) securitisation. Emphasising these three qualities is crucial, given the lessons learned from the crisis.
The securitised products which fanned the flames of the crisis were neither simple, transparent nor standardised. In fact, there was a proliferation of complex and opaque products that led to the problems we are all too familiar with.