Toxic Debt Condemned in Crisis Heralded as Europe’s Savior
This article is for subscribers only.
Asset-backed securities were denounced for causing the financial crisis. Now the debt is being seen as a savior for Europe’s economy.
The European Central Bank signaled this week that plans to ward off deflation may center on asset-backed securities, while policy makers are promoting an expansion of the market. The efforts come as sales of the bonds fell to $102.5 billion in Europe last year from $449 billion in 2007 and less than the $174 billion of issuance in the U.S., according to JPMorgan Chase & Co.