JP Morgan Worldwide Securities Services says both WestLB and its own investment banking arm have appointed its tri-party collateral management group as their dedicated Asset Backed Securities (ABS) tri-party securities financing agent.
Morgan says ABS issuance in Europe is growing faster than in the US, and the EU Capital Requirements Directive is expected to increase the use of ABS as collateral. Basel II, the recent loss of state guarantees for Germany’s Landesbanks and new international financial reporting standards are creating additional demand for collateralized lending and borrowing, says Morgan.
“We are impressed by the pricing capabilities and the commitment to collateral management of JP Morgan Worldwide Securities Services and we are pleased to be working with them on the first deal of its kind in the European market,” says Andy Wise, Director of Credit Repo at WestLB.
Mike Garrett, Head of European Repo Sales at JPMorgan, says he selected JP Morgan Worldwide Securities Services “because of its superior service offering, its experience in working with investment banks such as ourselves and its flexibility in providing services tailored to this groundbreaking deal.”
Kirit Bhatia, Global Head of Product Management for the Securities Collateral Management group at JPMorgan Worldwide Securities Services, says he is “delighted” to be working with WestLB and the investment banking arm of his parent bank on the deal. “The ABS market is expected to grow by over 40% in Europe this year and we anticipate that this deal will be the first of many as ABS becomes more widely accepted as collateral,” he says.