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ECB official claims securitised loans boost economic stability
Zone(s): Europe ¦ Sector(s): Finance
[12 June 2014, CITY A.M.] The bundles of loans that were blamed for exacerbating the financial crisis could in fact make the economy more stable, a top EU official said yesterday.
Simple and transparent asset backed securities (ABS) – bundles of loans such as mortgages or business loans – can be sold on to non-bank investors who want to lend to those sectors.