EU Tests Bankers’ Support for Continent-Wide Securitization Debt
- Bloc-wide platform touted as possible tool to boost the market
- Proposals seek to unlock much-needed investments for EU
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The European Union is moving ahead with plans to boost its asset-backed securities market by gathering financial industry feedback for a wide range of potential measures, including a continent-wide securitization platform.
One option would involve the use of public guarantees both at national and EU levels to scale up the market and create a new common “safe asset” across the 27-country bloc, the European Commission said in a 37-page consultation released Wednesday. An alternative idea would focus on pooling of resources and information to reduce issuance costs.