Royal London Asset Management Welcomes ECB Boost for Asset Backed Securities
6 June 2014
Responding to comments by Mario Draghi, President of the European Central Bank, about the need to revive Europe’s asset backed debt market, Jonathan Platt, Royal London Asset Management’s Head of Fixed Income, said:
“Mario Draghi’s comments are a welcome high level validation of asset-backed securities as an asset class. Such assets can be a good way of driving economic growth. They are also good for investors if they are comprised of the right assets, the right structure and the right amount of leverage.
But there is a perception by regulators that these assets are unduly risky and this may lead to a significant increase in the amount of capital investors are required to hold against these assets. This disconnect between the perceived risk from securitisation and the actual risk posed by high quality asset backed securities could inadvertently hamper the growth of the market in these valuable assets.”
For further information please contact:
Mona Patel, Corporate PR Manager 020 7015 2525
About Royal London:
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £73.6 billion. Group businesses serve around 5.3 million customers and employ 2,880 people. (Figures quoted are as at 31 December 2013).
The Group is moving to operate all of its UK life, pension and investment business under a new version of the Royal London brand. Royal London Asset Management is now under the new master-brand, and the Scottish Life, Scottish Provident and Bright Grey brands will migrate by the end of 2015.