Retained flow falters but ABS cheapest at ECB
With the ECB’s second long term refinancing operation only two weeks away, the flow of retained deals through the rating agencies is drying up, with few requests for new ratings since ECB President Mario Draghi announced the operations in December.
The eligibility of whole loans may be giving banks another source of ECB collateral, mitigating the need for retained issues. But RBS analysts have argued this route is more costly for many banks.
The ECB will offer Eurozone banks another chance to post collateral in exchange for three year
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