Prime Collateralised Securities has released a white paper explaining how securitisation could help resolve a €4 trillion funding gap in Europe. PCS acknowledges issues with certain structured-investment vehicles, subprime residential mortgage-backed securities and other securitisations but says most have performed well. The group identifies problems with pre-crisis securitisation, including a lack of transparency and embedded leverage. "Securitisations that did not partake of any of these components performed extremely well and in line with expectations," according to the paper.
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