It seems that the powers that be now agree and want to make it official.

Yeah.

So in terms of the sort of current regulation, we have this thing called you can get a simple, transparent, standardized stamp, which essentially means the transaction has been structured in a certain recognizable way that the regulator is happy to let you hold that securitization with security.

a lower capital charge than it normally would.

And it can also be included in, I guess, level 2b treatment in banks, the liquidity coverage ratio in a bank's pool of high quality liquid assets, if it meets a few other sort of requirements.

Yeah, again, we've had this sort of now this layer above it.

You could argue that maybe that was done for sort of political reasons that it would be bad to say we're sort of lowering the capital charges for lower risk transactions.

When will it come into force? And what are people saying about what the effect on the market will actually be when it happens?

What makes StrideUp's deal Islamic rather than conventional, first of all?

Yeah, so that's the kind of crux of the question.

I guess there's two elements to sort of look at.

So you're looking at the underlying financing products and then you're looking at how the securitization itself is Sharia compliant.

So in terms of the underlying products, they're called home purchase plans.

And it's different from a typical mortgage in that a typical mortgage, a bank will make a loan and then the borrower will repay principal and then interest on top of that as a fee for the lending.

So you can't really do that in Islam.

And so how big then can the Islamic RMBS market become, do you think?

How have these overarching narratives changed, Tom? And how's that actually helped to shape what the programme is and how it works?

Yeah, it's interesting because I think whilst it's true that a lot has changed, I think there's also a lot of things that are still true, right? So it's still true that ultimately you need to have good data that what you do works, that you can actually demonstrate impact, whether that's a very focused visionary like Koutis who's doing kind of specialized skin grafts, which have actually interestingly become particularly pertinent in the wake of the Kranz-Montana fires earlier this year, you know, where you obviously need a third stage clinical trial that this kind of, you know, visionary technology can even work through to, you know, things like swap our reps, which are, you know, a scale business model, or even our winner earlier this year for Pitch for Purpose from Tide, which is looking at ocean plastic.

they need to have good evidence and they need to have a business model that has the capacity to scale.

And that's almost just like a prerequisite.

And that's what we're always screening for.

And that's kind of our mindset of really looking for the impact unicorns has kind of led us to be really rigorous in terms of knowing what works.

Having said that, we sometimes will profile a really cool idea that maybe needs even more support to get to that point of being executionable.

What does it mean, Tom, to you to be part of this programme?

But what's the, what's the effect for the market of having a securitization with two triple A ratings? What does that allow, uh, investors to do?

Yeah.

So it mostly comes when you're looking at sort of the, the bank treasury, uh, side of the investor base.

So you know, a lot of treasuries will, will already have mandates that they, they don't, uh, you know, want to invest in products unless they have, you know, the, the two triple A ratings.

But I think the Sort of interesting aspect, uh, is kind of around, you know, how these, uh, products are treated from a regulatory perspective.

So we have, you know, after the GFC, we had the liquidity coverage ratio, which is, uh, a reform that basically ensures banks have a certain amount of what's called high quality liquid asset so that they can manage their cash outflows for 30 days if they were to get a, you know, similar liquidity crisis situation to 2008.

And generally, you know, one of the big things that you, you always hear in the securitization industry is that they're, they're quite unhappy with how most securitizations are treated.

Now, what's going on here? Has there been, in the opinion of, uh, DBRS and Scope, or perhaps even any of the ratings agencies or anyone at all, a huge increase in the credit quality improvement of Italian debt?

Give us a flavour of it and the sort of size and scale and where it takes place.

Yeah.

So, I mean, this is the big event of the year for anyone in European securitization.

I think there's due to be about 5,500 people there going to Barcelona.

And, you know, it's obviously a three-day event.

You know, the main thing is obviously you've got lots of panels, but it's really just a... opportunity for everyone in the market to kind of go down and meet.

And it's kind of the most productive period of the year for anyone in ABS.

So what's driving this revival of publicly sold credit card EVs at this particular moment, do you think?