The current situation The mortgage market has long been a source of strength in the U.S. economy, but it is facing very significant challenges today, especially in the subprime segment that serves consumers who have shorter or weaker credit records. In recent years, slowing home prices and a loosening of underwriting standards have contributed to sharp increases in delinquencies and foreclosures.
For monetary policy operations, counterparties will be able to use any eligible assets, irrespective of where they are located in the euro area. To this end, national central banks will act as correspondents for each other so as to make cross-border use possible also for assets for which this service is not yet provided by securities settlement systems.