Clash at top of EU over ABS threatens market revival

By Tom Brown
08 Oct 2020

The European Commission is facing pushback from the European Parliament over it turning to synthetic securitization — a market that still echoes the 2008 crisis for many legislators — to boost the ABS market and repair Europe’s economy in the aftermath of Covid-19. Tom Brown reports.

Debate over the role securitization should have in fixing Europe’s struggling economy dates back to before the pandemic.

When the Commission reviewed securitization and brought in the ‘stable, transparent and standardised’ (STS) label — a stamp of regulatory approval which signals to investors that the bonds are considered ...

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