The European Securitization Forum forecasts that securitization issuance volumes in the EU for 2008 will be EUR 272 billion or more than 40% lower than in 2007; for residential mortgage backed-securities the drop is predicted to be 50%. Since August last year some banks are in effect forced to hold a substantial portion of new securitization issuance on their own books.
But just as the strong growth of securitization before the correction led many observers to overemphasize the pros of the OTD model and neglect the cons, the present situation may well create a reverse tendency.