Banks, Investors Push EU to Fix Flaws in ABS Revival Plan
- 32 banks, asset managers and groups issue joint note on plan
- Signatories to letter include HSBC, BlackRock, UniCredit, BBVA
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European Union efforts to revive the asset-backed securities market and boost financing for small businesses could falter if repairs aren’t made to its plan for a new class of “simple, transparent and standardized” products, some of the biggest financial firms in the 28-nation bloc said.
The EU’s proposal, which offers preferential capital treatment to qualifying securitizations, needs to be brought into line with existing prudential rules for other investments of comparable risk, according to a joint note issued by banks and asset managers including HSBC Holdings Plc and BlackRock Inc.