241 6.3.1 Strategy for data observations and trends The risk retention rule came into force as of 2011 but it took some time for issuers to find a way to comply with the rule, therefore data on risk retention methods available in Bloomberg before 2014 is scarce. To describe data trends, we have dwies cdairsdpel da y t ht hee l ti mo t iatle di s snuuamn cbee rv ool fu mo bessear nv adt itohnes nbuemf obreer 2o0f 1d4e.a lIsn i nF i gouurres a6m. 3p( al e) ., Interestingly, we observe a significant increase in the number of newly issued ss et acbulrei t ti rz ea nt ido.nPs efrrhoamp s2, 0w1i7t ho nt hwe airndtsr.oHd uo wc t ei ovne ro, fi stshuea nS ceec uvroi tl ui zma tei so nh arveeg ur leal taitoi vneil ny 2017, the confidence in the securitization market has slightly grown with rising iosvseura tni cme evsool ur tme de sb ay sr ias kr erseut let n. tI ino nF i mg uerteh o6d. 3. (Wb )e, owbes edri vs ep laa yr et lhaet i vneul my sbtearb ol ef tdr ee anlds for FLT, OBS and FLE in the period 2014-2021. While interestingly, we observe a significant increase in tranches with the VES method after 201775. Td oa t ea xapnl od rlei mt hi ti so ut rresnadmepml epti or i cdaelal yl s wwei tahptphley Fl oLTg i ta nr edgVr eEsSs mi o ne tsh. oWdeounsl ye. Ad es awl -el eavreel trying to understand what influences the issuer’s choice, we use a number of cs eo cnttiroonl v6a. 4r.i1a,btlhe se .r eS taarret i ns egvwe ri at hl mt hoet imv eost ifvoer fsoerc uo rr ii tgiizni antgo ar sp, ao so leox fp laasisneetds , laamt e or ni ng wmhe itchho dc.a pTiht auls ,r ewl iee fa insa al y zper oimf di neeanl st tohnaet aanr de St hTiSs icso mt yppliicaanl lty alri en kme do rteo ltihk ee l yV Et oS have the VES method. ‘STS Compliant’ is a dummy that equals 1 if the deal is compliant with STS criteria at the time of issuance, and 0 otherwise. To analyze wc hhoei ct he e, rwtei mi nec leuf df eec tt sh eo ry ema ar ci rno we choi nc ho mt hi ce cs oe nc udri ti ti oi znast i ionnf l uweansc ies st uh ee dr, i st hk er e‘ t e n t i o n Country of Risk’ and the ‘GDP Growth Rate’ (the annual percentage growth rate of GDP in the country to which the assets of the securitization are mainly exposed to). 75 In Figure 6.1, we display the data without other filters, but a similar trend is observed if we use our final sample. Chapter 6 - Risk Retention in the European Securitization Market
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