Global ABS - our thoughts from Day 1

07 June 2017

Global ABS 2017 in Barcelona kicked off yesterday, (6 June).

The whole atmosphere of the event appeared very positive with lots of enquiries and new contacts being made at the new Law Debenture exhibit stand.

People were keen to meet their long established contacts, but there was an additional buzz around the new hires, especially Lorraine Egan, Ronan Reilly and David Bell.

As always Law Debenture received a warm welcome whenever it met a client, Law firm or banking contact, but there seems a special eagerness this year to understand the recent additions and changes to our business.

Michael Adams, in his first conference as Law Debenture CEO spoke on a panel regarding the opportunities in Europe for a new Green residential and commercial property improvement lending program, Property Assessed Clean Energy (PACE).

Unlike a normal loan, PACE is collected by US state counties as part of the property taxes (rates). It has the impressive claim of historically suffering zero defaults and the term of the lending can be as much as 20 years.

A small number of PACE Securitisations have been issued and due to their attractive Green nature, their relative long duration, fixed interest rate and low default rates, they are increasingly being seen as attractive to pension funds and insurance companies across Europe, among others.

US PACE securitisations are just starting to introduce themselves and hold initial marketing talks in Europe.

A Euro PACE product is being developed, but may still be a few years away due to its unusual and ground-breaking nature.

Darren Levene also spoke at a lively session on current hot topics for Corporate Trustees, where bondholder communication was very much under the spotlight.

The conference runs until 8 June.

 

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