AFME has published a report on the benefits of securitisation to the EU economy. Securitisation is important to the capital markets and it could help closing the funding gap. AFME looks at how the increased global regulatory burden on issuers and investors of asset-backed securities (ABS) can impact funding costs for businesses. The “skin in the game” provisions in CRD2 should have already addressed concerns about alignment of interests. Additionally, the Prime Collateralised Securities label (see FReD 15 June for this AFME initiative) will help identify best practices for high-quality securitisation. (Source: The Economic Benefits of High Quality Securitisation to the EU Economy)