Healthly Optimism Coming Out of ASF Conference

 This past week found 5,000 beleaguered industry professionals returning to Las Vegas for the first time since the credit crisis for their annual conference.  The decision by the American Securitization Forum to return to Las Vegas was, in its own right, a strong signal to both issuers and investors that the industry is ready to get back to work.

Clearly, there is still so much lack of clarity in the critical area of regulation both in the US and the EU markets but we walked away with the distinct impression that folks are tired of waiting for the regulators to figure things out and they are taking faith that the integrity of their structures and their investing decisions in these critical investment markets will ultimately stand the test of time and regulation.

Some of that confidence seems to be spawned from  the steady trickle of good or better news from US and EU governing and regulatory bodies about how Dodd Frank and other key “crisis era” legislation may be tweaked to restore investor confidence and reasonable economics for issuers.  In other cases, it is clear that investors are looking for better yield opportunities than they can find in other markets and there is growing sentiment that securitization may represent the best opportunities for yield while managing risk.  This last part may sound counterintuitive to casual followers of the industry over the past few years but we view it as a fact that many within the industry have always known.

We observed that many bankers and advisors are scratching away at the edges of the industry trying to revive structures in more of the emerging asset classes, where they have to work harder and longer but the level of commitment is admirable and confidence levels are growing.

Excellent move by Tom Deutsch and his colleagues at ASF to return to Las Vegas; perhaps just the tonic the industry needed after 5 years on the ropes.

About markferraris
Managing Principal Orchard Street Partners LLC

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