More transparency will kickstart ABS issuance, says ECB official

Wednesday, June 17, 2015

The ECB's ABS purchase programme has the potential to increase issuance, but originators should help by structuring simpler, more transparent deals, according to the ECB's head of risk strategy Fernando Gonzalez

TAGS: ABS

Comment by: Anonymous. Posted 8 years ago [2015-06-18 00:58:28]

For years now the ECB has been lending to bank issuers against their ABS originations. The sole purpose of generating the ABS has been for the bank to pledge this issuance as loan collateral. Did the ECB insist on transparency? No, it was reckless with valuation and diligence. So having this new program to buy the erstwhile loan collateral is not significant.

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