Mario Draghi announces the start of a consultation on “initiatives to promote a functioning market for asset-backed securities collateralised by loans to non-financial corporations”
In a press conference held on May 2nd in Bratislava, Mario Draghi, President of the ECB, announced a consultation with other European institutions on “initiatives to promote a functioning market for asset-backed securities collateralised by loans to non-financial corporations”. (The text of the press conference can be found here).
In his more detailed response to questions, Mr Draghi also distinguished clearly between “very different kinds of ABS” making positive references to what he described as “plain vanilla” ABS and indicating that this form of ABS was very safe. He also identified regulation as one of the reasons for the very subdued state of the ABS market.
Following Mario Draghi’s announcement of a consultation on assisting in the revival of the ABS market, the WSJ publishes an article on the subject in its Moneybeat blog. Francesco Papadia, PCS Chairman, and Ian Bell, Head of the PCS Secretariat, are quoted.