EU Tests Bankers’ Support for Continent-Wide Securitization Debt

The European Union is moving ahead with plans to boost its asset-backed securities market by gathering financial industry feedback for a wide range of potential measures, including a continent-wide securitization platform.

One option would involve the use of public guarantees both at national and EU levels to scale up the market and create a new common “safe asset” across the 27-country bloc, the European Commission said in a 37-page consultation released Wednesday. An alternative idea would focus on pooling of resources and information to reduce issuance costs.

“Would the establishment of a pan-European securitization platform be useful to increase the ...