They would, it appears, make their money from the income streams associated with the ABS. They would raise the funds to purchase ABS through debt issuance and, most significantly for the proposal, the repo market, in which the collateral offered would be liabilities of the NFBs.
The facility set up by European governments in May this year to provide financing to smaller European countries seemed for a time to lessen market concerns about sovereign debt levels. However, the situation has deteriorated noticeably again in recent weeks, as markets again question the capacity of some countries to sustain their current debt levels.