The ECB must buy mezz

By Tom Porter
11 Sep 2014

The European Central Bank has finally put its money where its mouth has been for some time on reviving European securitization. But if it doesn’t help banks shift the riskiest tranches off their books, it will have changed absolutely nothing.

The ECB had to give up any focus on SME lending by broadening purchases beyond SME ABS. There is barely €10bn of the stuff outstanding in Europe and half of it is pre-crisis Spanish exposure. But it does raise the question of how exactly the ECB is expecting ...

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