Draghi ABS Plan Seen Helping Banks Not Business
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Mario Draghi’s plan to spur growth by getting the European Central Bank to buy asset-backed securities and persuade lenders to sell more of the bonds is being met with skepticism by the region’s biggest money managers.
The ECB’s president is considering broad-based asset purchases, known as quantitative easing, to ward off deflation. He’s also promoting the market for bonds backed by loans to small- and medium-sized enterprises in a bid to increase funding to the businesses that employ about 70 percent of the European Union’s private-sector workers.