The European secured note: policy design and market potential

Small-and medium-sized enterprises financing is central to European competitiveness and the Savings and Investments Union. The European secured note has emerged as a potential new asset class to expand banks’ capacity to fund SMEs, drawing on the structural features of covered bonds while using business loans as collateral.

This roundtable in collaboration with European Mortgage Federation – European Covered Bond Council brings together senior representatives from policy, regulatory, banking, structured finance and rating communities to assess the ESN’s design, regulatory pathway and market potential. The discussion examines key policy considerations, including whether a principles-based directive or a harmonised European Union regulation is the more appropriate legislative approach, as well as the ESN’s prudential treatment relative to covered bonds and securitisation.

Participants also explore the ESN’s market role, including its potential contribution to SME financing, likely investor base, rating considerations and early issuance activity.

The meeting is held under the OMFIF rules to encourage open and candid discussion.

In partnership with: