European Securitization Market - Arranger
Having searched the available public sources thoroughly, we find limited data available on the financial institutions which take on the arranger role in the European securitization market. To briefly summarize our findings:
- Based on awards nominees from GlobalCapital's annual contest, arrangers in Europe are commonly large, multinational banks, many of them based in the US.
- There is considerable overlap among the banks in the types of assets that they service in; e.g., Bank of America and BNP Paribas have been nominated for the ABS, CRE & CMBS, and RMBS Bank of the Year award. We, therefore, suspect that the majority of financial institutions involved do not specialize in a particular asset type.
- It is not uncommon for the originator to act as the arranger as well.
- It is also more common for fund managers to work with arrangers rather than take on the role themselves.
- There is no comprehensive listing of arrangers from which we can derive a number, possibly due to the overlap with originators.
Research Strategy, Data Points, and Interpretations
After familiarizing ourselves with the roles played by different actors in a securities transaction (a representative sample of our sources can be found here, here, and here), we looked into which banks are operative in these roles in Europe. Note that while this project pertains strictly to the European market, official European sources frequently refer to American resources, indicating that, in most respects, the processes are the same across the pond. Indeed, a report from the European Securitisation Forum notes that "the process of securitisation ... will be similar to a meaningful degree wherever the securitisation concept is applied ... even in different countries, under different legal and regulatory structures." We have, therefore, incorporated those American sources into our research.
In a serendipitous discovery, we found that GlobalCapital holds an annual contest for European Securitization actors. The nominees for Arranging Bank of the Year and winners from the prior year are all large, multinational corporations:
- Bank of America
- BNP Paribas
- Goldman Sachs
- Morgan Stanley
- Merrill Lynch
- Monte dei Paschi di Siena
- Deutsche Bank
- JP Morgan
- Credit Suisse
We were unable to determine how many arrangers are operative in Europe due to all available sources being paywall-locked (e.g., see GlobalCapital's partial list here).
Despite a thorough search of European financial and government sources, we are unable to locate a public, authoritative source that provides insight into how arrangers are clustered by asset type. Based on award nominations, there is considerable overlap among the banks; e.g., Bank of America and BNP Paribas have been nominated for the ABS, CRE & CMBS, and RMBS Bank of the Year award. Given the overlap and the lack of data in the available sources, a thorough analysis of clusters by asset types cannot be achieved within the scope of a single Wonder request.
Therefore, we will attempt to provide some insight, using FitchRatings' search engine as our proxy source. Isolating the European Structured Finance market, we found 99 deals in which arrangers were notably involved as follows:
- Residential Mortgage (57)
- Asset-Backed Securities (22)
- Commercial Mortgage (18)
- Structured Credit (11)
Further analysis of these deals and the banks involved, again, cannot be completed within the scope of a single Wonder request, though we deem it likely that further study would yield additional insights.