Draghi shows ABS the money but regulators hold revival key

By Tom Porter
05 Jun 2014

The European ABS market may soon have the full weight of the ECB’s balance sheet behind it after the central bank president, Mario Draghi, announced on Thursday that outright purchases are being prepared. But while bankers are hopeful investors could be attracted to the product and issuance volumes increased, they remain convinced that the regulatory framework to support a true revival is still not in place.

Draghi stepped up the rebrand of securitization as the saviour of small business lending on Thursday, saying the ECB’s Governing Council would “intensify” preparatory work on outright purchases of securities backed by loans to non-financial companies.

ABS bankers said the widely anticipated move would, if followed through, give ...

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