The ECB Clarifies its Ratings Requirements for ABS Repo Facility Eligibility
April 21, 2010
Conor Downey and Diego Shin
As discussed previously, after a period of intensive speculation, the European Central Bank (ECB) has recently taken the first steps to tighten its criteria for access to its repo facility in an attempt to encourage the ABS market to become less reliant on its emergency funding or repo facility. One of the most significant of the measures taken by the ECB is the increase in the ratings requirements of asset backed securities (ABS) in order to obtain or preserve ECB repo facility eligibility.
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April 20, 2010