Bankers brace for ABS buying as BlackRock joins ECB team

By Tom Porter
28 Aug 2014

The European Central Bank took a big step closer to launching outright European securitization purchases this week as it hired BlackRock to help design the long-awaited plan. But ABS bankers are warning it will take time for a depleted investor pool to grow sufficiently to support president Mario Draghi’s ultimate goal of delivering more funding to the continent’s smaller companies.

Draghi increased expectations of some form of quantitative easing in Europe with a speech to the Jackson Hole summit in which he stressed the threat of low inflation in the eurozone, while he also said the ECB was “fast moving forward” with a plan to purchase certain asset-backed ...

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