Apollo Sees €1 Trillion Opportunity If Europe Overhauls ABS

About €1 trillion of financing for the real economy in the European Union could be unlocked if authorities there overhaul the bloc’s securitization regime, according to Apollo Global Management Inc.

Authorities in the region could boost demand for high grade asset-backed securities if they recalibrate capital charges for insurers, Apollo wrote in response to a European Commission consultation on the future of the market. The prudential requirements, known as Solvency II, are overly conservative compared with other asset classes, a spokesperson for the firm said.

The EU plans to boost its ABS market after former European Central Bank President Mario ...