Reported about 1 year ago
Banks are turning to the bond market to sell assets as they face more expensive loans under the Basel III endgame. Asset-backed securities (ABS) sales have surged in the US and Europe, with a notable increase in auto loan securitizations leading to higher bond sales predictions. Investors are showing strong interest in ABS linked to various assets, including art and internet protocol addresses. Despite potential slowdowns, robust demand and growing ABS issuance indicate banks are preparing for tougher capital rules.
Source: YAHOO