ECB’s €40bn plan to revive economy
The central bank will limit purchases to the new-issue market over a three-year period and focus on securities with the highest credit ratings, JPMorgan analysts, led by Gareth Davies wrote in a note. About €47bn of asset-backed debt has been sold in the region this year, according to data from the New York-based bank.
The ECB is preparing to buy ABS as it strives to revive lending to small-and medium-sized businesses that employ about 70% of the European Union’s private-sector workers.
