Morgan Stanley Joins BofA Cutting ABS Outlook Amid Flood of Cash
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Mario Draghi is undermining his own plan to support asset-backed debt as he floods banks with cheap money, according to Morgan Stanley and Bank of America Corp., prompting them to cut forecasts for sales of the securities.
The European Central Bank President has made a revival of the notes a key part of plans to fuel growth in the region to help boost lending to businesses. The $2 trillion ABS market contracted 32 percent since 2009 as regulators cracked down on the debt they blamed for deepening the financial crisis.