ECB Getting Aggressive on Buying Asset-Backed Debt
- ABS make up less than 3% of the ECB's latest bond-buying plan
- Asset-backed bond purchases by ECB total 11.2 billion euros
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The European Central Bank is becoming more aggressive in trying to procure asset-backed debt after its purchase program drew criticism from investors and traders disappointed by its reach.
Instead of just buying notes directly from banks, the ECB is now targeting investor holdings, according to four people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. Fund managers hired by the central bank started sending unsolicited requests for securities in June, the people said.