The European Central Bank will start buying ABS, securitized bank loans, this week. The Financial Times writes it, based on market expectations. The intervention of the European central institute would thus add to the one just carried out in the week ending 14 November with the purchase of approximately 3 billion euros of covered bonds.
However, according to the British newspaper, it is unlikely that this new intervention will seriously contribute to the increase in the size of the balance sheet of the ECB itself, which intends to return to the peaks of early 2012, ie approximately one thousand billion euros more than current values.
In about a month of operations, the ECB has accumulated only 10,5 billion euros of covered bonds, while the early repayment of long-term subsidized loans launched during the public debt crisis (Ltro) has helped to thin the institution's balance sheet central.
