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ABS industry pins hopes on ECB repo criteria for rules relief 

April 28, 2014
Anna Brunetti, Reuters

Policy-makers should boil down a standard definition of high-quality securitisation pivoting around the European Central Bank collateral-eligibility criteria to boost the recovery of the asset class, market participants say.

Analysts seem to agree that there is no easy way around the differentiation of sound, premium-quality ABS from more opaque structures as the preliminary step in any regulatory relief, and so promote the ECB's criteria as the basis for cherry-picking assets.

Greeting the recent joint paper by the European Central Bank and the Bank of England as a "eureka moment" for the industry, market players now seek to answer one question: what would it mean, in concrete terms, to remove regulatory roadblocks from securitised markets? BALANCING WORDS AND ACTIONS "There is a sense of urgency in the document that represents almost a eureka moment for the market, after years when regulators have overcompensated for the faults of the crisis," said a senior securitisation official at a UK bank.

Read more: Reuters

 
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