Draghi Asset-Backed Bond Stimulus Seen Choked by Red Tape
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Mario Draghi’s plan to stimulate Europe’s economy by buying asset-backed securities is underwhelming investors, with purchases bogged down by bureaucracy and paperwork.
Since the European Central Bank president started the program eight weeks ago, 2.12 billion euros ($2.46 billion) of debt has been acquired. At this pace it will take almost eight years to reach even one tenth of his 1 trillion-euro target for balance sheet expansion.