Sweeping it under the carpet

A securitisation initiative designed to strengthen capital ratios within ailing German banks and boost the supply of loans to hard-hit SMEs has been greeted with a degree of scepticism in some quarters. Simon Adamson picks over the scheme

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The publicity generated by the launch of the True Sale Initiative in April says more about the state of German banking than it does about the securitisation venture itself. Although described as “innovative” and “ground-breaking” by the participants, it is essentially a straightforward securitisation, albeit with the twist that the major German banks will jointly own the special purpose vehicle.

Likewise the proposed change of tax treatment that will make true sale (or funded)

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