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 2016 EUR 17.2 billion in loans and receivables at German banks and enterprises were securitized in the term market and another EUR 15 billion in the ABCP market. Essentially, this was of benefit for sales financing in the German automobile industry, the leasing business. For 2017 we expect for the term market roundabout EUR 10-11 billion in loans. Where tax rules allow German SPVs to be established, more than half the originators opted for the TSI solution. As a result, more than 120 securitisation transactions have been processed since 2004 (October 2017).

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 almost 14,000 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 and financial market trends

  • Interest rate turnaround and stability of euro countries – implications for capital markets and securitisation markets
  • Brexit and its implications for the capital markets and financial markets
  • Implementation of STS securitisation regulation – impacts on the securitisation markets
  • Financing of sustainable investments with Green Finance
  • Adjustment of banks’ balance sheets – tools and opportunities
  • New alternative finance solutions in the corporate and retail segment
  • The role of securitisations in the cooperation between credit funds, FinTechs and banks
  • New transparency requirements under the STS, Repository, European DataWarehouse
  • NPL management in southern Europe – options for securitisations and investors
  • Future of asset class CLOs

 

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

  • Level 2 and 3 – accompany regulations in the implementation of the STS
  • Continue taking stock of financial market regulation (level playing field for clear, simple and reliable conditions, regulation of potential investors)
  • Accompany development of Basel IV and its impacts on financing for the real economy and the securitisation market
  • Observe tax issues that are of relevance for securitisation
  • Monitor further developments in the deepening of the capital market union project (European Safe Bonds, prospectus law, insolvency law)

 

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

  • Gradually bring quality label in line with STS criteria
  • Establish the brand ‘GERMAN SECURITISATION STANDARD’ as a quality brand within STS securitisations
  • Address third-party certification based on STS regulation

 

4. Networking and public relations

  • Further deepen links to German business (DIHK, BDI, VDA, VDT, BGA) and corporate treasurers
  • Initiate event forums for research and financial market practice on the topics of capital market union, financial market regulation and financial market stability
  • Intensify contacts with European regulators (EBA, EIOPA, ESMA) as well as Deutsche Bundesbank and European Central Bank
  • Maintain and intensify cooperation with European institutions in the area of structured finance (PCS, AFME, DSF, etc.)
  • Use new topics of digitalisation and structured finance (FinTechs, Blockchain) as well as Green Finance in order to expand network and portfolio of topics
  • Optimise the internet presence of TSI and TSI compact (blog) in search engines on 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