In fostering the market for ABSs, the Bank decided to shoulder the credit risk of private debt obligations by directly purchasing such securities. This is mainly because the market is still in an  6  BIS Review 34/2003  embryonic stage and hence there are very few participants willing to take on risks and, moreover, it is difficult to originate the securities.
This reduces the information costs of lending and hence should allow more credit to be made available at lower interest rates. Better credit information can reduce the extent of credit rationing which is a serious problem in financial markets. Because credit information helps credit markets to function more smoothly, thereby generating social benefits, such information has some of the characteristics of a public good.