ECB plan not enough without mezz buyers

By Tom Porter
12 Jun 2014

The European Central Bank may give investors in senior tranches of ABS an important guarantee of liquidity with any impending outright purchases, but bankers on the SME financing panel at Global ABS said the market must find investors to buy further down the capital stack to help undercapitalised banks lend.

The ECB last week said it was preparing purchases of certain high quality ABS in a bid to revive securitization in Europe, in order to help banks lend to small and medium-sized enterprises.

But members of the panel were concerned that initiatives aimed at providing liquidity and standards for senior ...

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