The Eurosystem’s interest in securitisation markets Let me start with the ECB’s perspective. As you may know, in recent months the ECB has put a great deal of public focus on reviving the European ABS market. Why are we so interested in this particular market segment? There are three parts to the answer: price stability, financial stability, and the stability of our balance sheet.
First, and most importantly, we see ABS as a means to an end, and that end is achieving our primary objective of price stability. ABS provide a channel for the funds of liquidity-rich bank or non-bank investors to reach the real economy, in particular its more opaque segments.