Of course, we know that overly-complex and opaque ABS, particularly in the US, contributed to the financial instability witnessed in 2007 and 2008. But as I have long argued, alongside other policymakers, simple and transparent instruments can spread well-understood risk across different financial actors and hence play a stabilising role.
As ABS can be customised, for example in terms of asset exposure, geography, and maturity, they can satisfy the needs of most non-bank investors, whether a pension fund, an insurer, or an asset manager.