ABS bankers eye CB gains as ECB targets next week

By Tom Porter
13 Nov 2014

ABS bankers have been looking at the recent positive effects on funding levels in the covered bond market as they prepare for purchases by the European Central Bank, which executive board member Yves Mersch has confirmed will begin next week. But they remained concerned about the crowding out of private investors.

Mersch said in a speech in Germany on Monday that the ECB’s private sector asset purchase programme, which began with covered bonds two weeks ago, would continue with ABS “in one week”. He added that sovereign bond purchases remained a theoretical possibility if conditions deteriorated.

The pace of ...

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