Mario Draghi’s announcement on 2 May 2013 at the monthly press conference in Bratislava that the ECB is deliberating with other European institutions about initiatives to promote a functioning market for ABS collateralised by corporate loans triggered a flood of controversial discussions and media reports. Responding to questions about this, Draghi clarified his statement regarding the ABS market and explained that the ECB had established a task force together with the European Investment Bank (EIB) and that considerations about the ABS market were still very much in the preliminary stages and that a decision was still a long way off. According to a Bloomberg report dated 15 May, Banque de France (BdF) has also been working since last July on a national securitisation solution for SME financings.
A good idea, but as the DZ BANK ABS Flash reveals, just these measures will not be sufficient to revitalise the European periphery:
“ … a programme that is limited only to SME securitisations from the periphery states with regard to time, volume and content, is not enough for a sustained recovery of the European securitisation market overall. Regulatory mitigations would be necessary to achieve noticeable and sustained market effects.“