The True Sale PCS Label

Together with the Risk Transfer PCS Label, the True Sale PCS Label is one of the two labels awarded by PCS.

This label may be awarded to European asset backed securities where the ownership of the assets being securitised is transferred by way of a sale or similar legal device to a party other than the originator.  Usually, this party is a special purpose vehicle – a corporation created for the sole purpose of effecting the securitisation.

Awarded at the request of financial institutions which issue these instruments, the PCS True Sale Labels will be awarded to the senior most tranche of asset-backed transactions.  The transactions to which labels are awarded must fully meet the eligibility criteria set down by the PCS Association.

These criteria seek to capture some of the aspects of securities that are indicative of simplicity, asset quality and transparency and reflect some of the best practices available in the European securitisation market for both asset backed securities and risk transfer instruments. They also reflect the PCS Label’s focus on securitisations that fund the real economy and, in the case of publicly issued securities, are compatible with good liquidity.

These criteria have been selected also by seeking to learn from the past and particularly from aspects of the market during the crisis that began in 2007.

However, market participant and visitors to this site must bear in mind that the selection of the criteria for both labels cannot reflect an objective, scientific process but is a subjective view as to what constitutes today simplicity, asset quality and transparency in the European market for asset backed securities

Market participants and visitors to this site must also remember that the PCS Label is not a recommendation to buy, sell or hold any instrument (including securities). Nor is it investment advice or a credit rating. The label does not seek to express any view about the creditworthiness of individual instruments. In this respect, it is imperative that you read our disclaimer, which may be found here.

For more information on how a true sale securitisation works, please consult our Basic Information section.

For a list of all the transactions that have received a True Sale PCS Label, please consult our True Sale Transactions section.

Further information

    • PCS Procedures Manual more >
    • Terms and Conditions of the PCS Label more >
    • Label Fees more >