Ireland is top of the table when it comes to financial vehicle corporations in the Eurozone.
According to the ECB:
“Financial vehicle corporations” (FVCs) are undertakings which are constituted pursuant to national or Community law and whose principal activity meets both of the following criteria:
to carry out securitisation transactions and which are insulated from the risk of bankruptcy or any other default of the originator;
to issue securities, securitisation fund units, other debt instruments and/or financial derivatives and/or to legally or economically own assets underlying the issue of securities, securitisation fund units, other debt instruments and/ or financial derivatives that are offered for sale to the public or sold on the basis of private placements.
Neither MFIs [Monetary Financial Institutions] nor IFs [Investment Funds] are included in the definition of FVCs.
“Securitisation” means a transaction or scheme whereby: (i) an asset or pool of assets is transferred to an entity that is separate from the originator and is created for or serves the purpose of the securitisation; and/or (ii) the credit risk of an asset or pool of assets, or part thereof, is transferred to the investors in the securities, securitisation fund units, other debt instruments and/or financial derivatives issued by an entity that is separate from the originator and is created for or serves the purpose of the securitisation.
The ECB lists 776 financial vehicle corporations for Ireland in its breakdown of FVCs for Q4 2011.
These corporations manage 4,036 of the products listed in the ECB Q4 2011, zip file here.
A number of mortgage-backed securities - that is, Irish mortgages that have been bundled together and sold as a financial product - are included in this list.
I extracted the Irish-domiciled products and an Excel file of that list is available here on google docs.
I found names for 720 of the 776 companies in the 4Q 2011 products list - the excel file of those names is here.
These 720 companies share 21 Dublin addresses. Each address below links to an excel file of the companies and products listed at that address. The full excel file list of companies and addresses is here.
Not all the management companies are listed. Of those that are, here are the names:
A&L Goodbody - law firm - 3 FVCs
Capita Trust Company (Ireland) Ltd - 37 FVCs
Citco Corporate Services (Ireland) Ltd - 52 FVCs
Dillon Eustace - 1 FVC - law firm
EBS Limited - 8 - Address given as offices of Arthur Cox & Co.
HMP Secretarial Ltd - 4 FVCs
KBC Bank Ireland plc - 16 FVCs
Lone Star International Finance Ltd - 31 FVCs
Maples Fiduciary Services (Ireland) Ltd - 163 FVCs
Marsh Management Services (Dublin) Limited - 172 FVCs
Structured Finance Management (Ireland) Ltd - 131 FVCs
The Bank of New York Mellon (Ireland) Ltd - 368 FVCs
TMF Administration Services Ltd - 249 FVCs
Wilmington Trust SP Services (Dublin) Ltd - 374 FVCs
No Name - 1843 FVCs
In terms of addresses, around 1,600 FVC products are administered out of one address - 5 Harbourmaster Place, IFSC, Dublin 1 - one of the central buildings of the IFSC.
The size of the market for Irish mortgage-backed securities is quite worrying. These financial products, after all, are what caused the tipping point in the States back in 2007/2008.
The further weakening of the Irish mortgage market - that is, arrears and outright defaults - has still to make itself felt with regard to these products.
It deserves a post in itself. I’ll get back to it next week. All this stuff above has my brain fried.
Some music to shake the dizziness away.