Lack of issuance hinders ECB ABSPP

By David Bell
08 Sep 2015

Due to new purchases failing to match redemptions, holdings in the European Central Bank ABS purchase programme fell for the first time last week. ECB Governing Council member Ewald Nowotny admitted that the programme was failing, blaming a lack of structured products in the market for the €100m fall in holdings.

New ABS issuances have been hindered by its more stringent regulation and higher funding costs compared to other asset classes, according to analysts.

According to JP Morgan, year to date structured finance issuance (excluding US) stands at €58.8bn, a rise ...

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