ECB tightening may hit ABS participation

By Tom Porter
23 Oct 2014

More investors than ever before expect securitization volumes to rise in the next 12 months, according to Fitch's latest quarterly investor poll. But active ABS investors are concerned that the spread tightening attributed to the European Central Bank’s impending purchases will render returns in the asset class insufficient to grow or even maintain investor participation.

Some 60% of respondents in Fitch’s third quarter survey — the first since the ECB first revealed its plans to purchase ABS in June — expected ABS issuance in Europe to increase over the next 12 months, a record high in the report’s seven year history and a higher proportion ...

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