TSI – an overview

Securitisations have demonstrated their value in Germany; for the German economy, they are proving to be a key link to the capital market. In 2014 EUR 20 billion in loans and receivables at German banks and enterprises were securitised, around EUR 42 billions in 2015 because of one single huge RMBS transaction that went to the ECB. For 2016 we expect a similar figure as for 2014. Essentially, this is of benefit for sales financing in the German automobile industry, the leasing business and industry. Where tax rules allow German SPVs to be established, more than half the originators opted for the TSI solution. As a result, more than 110 securitisation transactions processed have been processed since 2004 (December 2016).

Structured finance in Germany and TSI – the two go hand in hand. True Sale International GmbH (TSI) was founded in 2004 as an initiative launched by 13 banks in Germany to further the German securitisation market. Today, TSI deals with a far wider range of issues, covering broad segments of the asset based finance market.

TSI's original intention was to enable banks in Germany to securitise their own loans under German law and on the basis of a standardised procedure approved by all market players as well as to create a brand for German quality securitisations. The DEUTSCHER VERBRIEFUNGSSTANDARD (German securitisation standard), which is now firmly established, sets standards for transparency, investor information, lending and loan processing and excludes "originate to distribute" (OTD) structures. TSI'S events, which have been attended by over 12,500 people since 2005, and its frequently visited website, including its own blog on current capital market and regulation topics, allow the company to exert a vital influence on the German market for securitisations and other forms of covered finance.

This is a good foundation from which to address forward-looking topics associated with the continually developing asset based and structured finance market. For example, TSI is also tacking matters concerning related asset classes such as structured covered bonds, infrastructure and credit funds and project bonds.


1. Capital market trends

  • Regulation and capital market development in the USA (deregulatory trends and Dodd-Frank Act)
  • Brexit and its implications for the capital markets
  • Forms of cooperation between insurance companies and banks
  • Return of the CLO asset class
  • Fintechs – How can structured finance and securitisation contribute to their refinancing?
  • Impact of STS securitisation regulation on the markets for securitisations of trade and leasing receivables, SME securitisations and auto loans
  • Equity management / relief for bank balance sheets by synthetic securitisations, private placements and the debt certificate market
  • NPL management in southern Europe

 

2. Further development of the legal framework and representation of real and financial economy interests

  • Monitor the implementation of the high quality definition for “simple, transparent and standardised” (STS) ABS transactions and ensuring that securitisation of trade and leasing receivables and synthetic (SME) securitisations are included
  • Continue to follow financial market regulation (level playing field, clear, simple and reliable framework conditions, regulation of potential investors)
  • Address the implications of political trends in Europe and of monetary and fiscal policy for the capital markets and especially for the securitisation markets
  • Monitor Basel IV developments and their impact on real economy financing
  • Observe the development of tax matters relevant to securitisation (currently Article 13c of the German Value Added Tax Act (UStG) – judgment)

 

3. Positioning the quality label and the TSI securitisation platform for STS securitisations

  • Align the quality label with STS criteria
  • Establish the “DEUTSCHER VERBRIEFUNGSSTANDARD” brand as a quality indicator for STS securitisations
  • As the case may be expand certification to include ABCP as part of STS securitisation

 

4. Networking and public relations

  • Further consolidate contacts with the German business sector (DIHK, BDI, VDA, VDT, BGA) and with corporate treasurers
  • Enhance familiarisation with ABCP programmes among potential users, political circles and regulators
  • Set up discussion forums for the academic sector and financial market practice on the subject of financial market regulation and financial market stability
  • Further developing contacts with financial market regulators and with the Deutsche Bundesbank/ECB
  • Maintain and intensify cooperation with European institutions associated with structured finance, such as PCS and AFME
  • New topics relevant to structured finance, such as fintech financing, integrating the TSI brand into credit transfer as related to structured finance and addressing these issues at events, in PR and in the further development of the legal framework
  • Set up an investors’ working group on ABS as a forum for an exchange of views on specialised topics
  • Position the TSI website in search engines on the specialist topics of regulation and financial market stability

 

At the heart of the German ­asset based finance market

In its endeavours, TSI has the support of many partners – banks and law firms, rating agencies, auditing companies and service providers. It thus reflects the breadth of the German market.

TSI's Advisory Council plays an important role in the company's work. It comprises board members and CEOs of major German banks, the three large rating agencies, two auditing firms and representatives of the Federal Ministry of Finance and the Federal Ministry of Economics and Technology. It identifies and discusses key issues to be taken up by TSI.

 

 

TSI Partners

TSI has the support of a broad, top quality network formed, at present, by 70 enterprises from the asset based finance industry. TSI Partners come from all sectors of the German securitisation market: banks, consultancy companies and service providers, law firms, rating agencies and professional associations. The unifying factors are competence and experience in the securitisation market and a common interest in further developing that market. TSI Partners derive particular benefit from TSI's lobbying and PR services. If you would like to find out more about the individual TSI Partners, their competence with regard to the securitisation and asset based finance market and their range of services, just click here to access more detailed information.

 

 

Shareholders of TSI

  • Bayerische Landesbank
  • Citigroup Global Markets Deutschland AG
  • Commerzbank AG
  • DekaBank Deutsche Girozentrale
  • Deutsche Bank AG
  • DZ BANK AG
  • Erste Abwicklungsanstalt (EAA)
  • HSH Nordbank AG
  • KfW
  • Landesbank Hessen-Thüringen Girozentrale
  • UniCredit Bank AG

Chair of the TSI shareholders' meeting:
Dr Matthias Hillmer, DZ BANK AG