Draghi hints at ECB buying, calls for bifurcated ABS regulation

By Joseph McDevitt
27 Jan 2014

ECB president Mario Draghi did not rule out buying securitizations to help Europe’s economic recovery, while speaking on a panel at the World Economic Forum on Saturday. But he lamented the state of the securitization market and called on regulators to do more to distinguish between plain vanilla ABS and more opaque securitizations.

Issuance in the corporate and financial institution bond markets had recovered sufficiently that ECB intervention was not required in those areas, according to Draghi. Buying loans on bank’s balance sheets would be helpful, but the ECB did not want direct exposure. “The issue for further thinking in the ...

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