Posts tagged 'ABS'

The €1,000,000,000,000 question, revisited

Unanimous in its commitment to using also unconventional instruments within its mandate in order to cope effectively with risks of a too prolonged period of low inflation…

– Mario Draghi, April ECB press conference

Don’t try saying that with a mouthful of peas.

More seriously, spot the caveats. A few members of the ECB governing council have since added to the noise around ECB QE — Nowotny, Mersch, Constancio, Coeure and Weidmann — but we feel better no informed than when the presser ended on Thursday. Read more

A BS solution?

Buy equities said man owning equities. Maybe buy loans hinted man at the ECB:

We think that a revitalisation of a certain type of ABS, a so-called plain vanilla ABS, capable of packaging together loans, bank loans, capable of being rated, priced and traded, would be a very important instrument for revitalising credit flows and for our own monetary policy… Read more

NPLs and lights in dark places

Consider this chart from JP Morgan’s Flows & Liquidity team. It shows the evolution of non-performing loan ratios (as percentages of total loans) across three different Euro area blocks: Germany, core and periphery.

The definition of a non-performing loan (NPL) differs across countries but the picture is definitely not pretty. Read more

(Possibly) balance-sheet insolvent issuers, rejoice

Some light securitisation reading on Thursday; actually, more like some general ‘how much of western capitalism might be insolvent, anyway?’ reading.

It’s the UK Supreme Court’s judgment in the the Eurosail case.

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