The “new ABS” must be different from the previous ones. If they are more transparent and simpler then they will be less risky – the rules could take this lower degree of risk into account, in particular for the capital requirements applying to banks and insurance companies.
It’s not a question of going back over the need to raise the moral standards of finance, which has been advocated since 2008, but to promote instruments that finance the economy. Might the normalisation of US monetary policy push European interest rates up?