ECB-eligible paper left behind in ABS rally

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ECB-eligible paper left behind in ABS rally

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FRANKFURT, GERMANY - JULY 17, 2015: Short time after opening of new headquarters of European Central Bank in Frankfurt, Germany. Dark cloud over building. | travelview - stock.adobe.com

The European securitization secondary market has rallied, with primary issuance in CLOs and ABS helping to tighten spread levels. But traders are ignoring deals which may be supported by the European Central Bank (ECB), citing a lack of certainty over whether the ECB will buy.

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