ABS and covered bonds will grow in importance in 2011, as bail-in laws and constrained demand for senior unsecured bank debt push banks into secured funding, according to Moody’s.
Some governments plans to impose losses on unsecured debt holders in future sovereign (and possibly also bank) rescues has raised market uncertainty, the agency said in its ABS and RMBS Outlook for 2011 published on Monday. As a result, banks seek alternatives like secured funding (meaning structured finance
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