William Perraudin in GlobalCapital on MDB securitization

In GlobalCapital’s article MDB securitization on a roll but industrialisation is a way off, William Perraudin, director of Risk Control, discusses how multilateral development banks approach securitization and risk transfer.

“The question of should securitization be funded or unfunded is really preoccupying senior people in different MDBs. These discussions revolve around the capital efficiency of risk transfers, which comes back to the investor attitudes but also rating agency attitudes.”

On how MDBs judge whether a risk transfer is worth doing:

“They think about the ratio of the percentage of risk-weighted assets saved to the percentage of spread income given up.”

The full article is on GlobalCapital.