Asset-Backed Debt Losses Mount as Draghi Support Proves Feeble
- Securities poised for first annual losses since 2011
- ECB's Nowotny said ABS program not as successful they hoped
European Union (EU) flags fly outside the new headquarters of the European Central Bank (ECB) in Frankfurt, Germany.
Photographer: Martin Leissl/BloombergThis article is for subscribers only.
Investors in Europe’s asset-backed securities market thought they’d scored a win when Mario Draghi endorsed the debt last year. Now the notes are poised for their first annual decline since 2011 after five straight months of losses.
Bonds backed by business loans, mortgages and credit-card debt from the Netherlands to Spain lost an average 0.5 percent this year through Sept. 4, according data compiled by Barclays Plc. That’s on track for the first annual decline since the securities lost 2.6 percent in 2011, the data show.