ABS looks forward to the end of liquidity exile

New amendments to the CRD IV have given the European ABS market a glimmer of hope that securitisation will no longer be frozen out of bank liquidity buffers. With the recent reliance on covered bonds diverting demand from other asset classes, concern over the product’s regulatory pedestal has grown. That ABS is back in contention is therefore a welcome sign, even if it is too early to herald the market’s rejuvenation.