ABS drive, to the point

The next ABS purchases program is expected to be of 250bn€ in three years maximum, €7bn per month. According to JP Morgan analysts, it would only include senior, non-retained asset-backed securities.

Although it is not expected that Mr Draghi announced that the program will include the ABS retained by the banks or the riskier mezzanine tranches, the Anglo-Saxon press spoke of the possibility that the ECB could buy corporate bonds and certificates that have a rating of less than BBB. This would especially benefit the peripheral bonds and very especially Greece’s and Portugal’s, whose ratings are B and BB respectively, as well as financial institutions.