Covered investors could shift to ABS on ECB backing

By Tom Porter
11 Sep 2014

Covered bond investors that have long shunned the European ABS market may be among the first buyside participants to be drawn back into securitization as yields in their market are squeezed even tighter by the European Central Bank’s impending purchases, bankers told GlobalCapital this week.

ECB president Mario Draghi last week announced that a third round of covered bond buying would accompany a long awaited purchase programme for ABS, a move that was widely derided by the covered bond community.

One of the results ABS bankers are desperate to ...

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