Innovation fuels Italy’s securitisation boom

Tax changes and increasing corporate credit risk have prompted Italian dealers to look for new assets to securitise.

The Italian securitisation market is heavily dependent on the interest of foreign investors. And much of their interest has, until now, been focused on deals based on Italian banks’ non-performing loans.

That is changing, because rising corporate default rates have made investors wary of sub-investment-grade corporate assets. But banks know that if they can come up with new assets to securitise, there are still plenty of willing buyers.

“Across most European markets we’re seeing narrower