Quantitative Easing, Structured Finance and Support to the Real Economy Proposals on ABS

12 Pages Posted: 26 Nov 2014

See all articles by Franco Bassanini

Franco Bassanini

Astrid

Gino Del Bufalo

Cassa Depositi e Prestiti

Rainer Masera

Università degli Studi Guglielmo Marconi

Marcello Minenna

The Italian Securities and Exchange Commission (CONSOB)

Edoardo Reviglio

Cassa Depositi e Prestiti

Giuseppe Zadra

Istituto Einaudi for Banking, Financial and Insurance Studies (IST EIN)

Date Written: November 19, 2014

Abstract

In the current European macroeconomic context Asset Backed Securities (ABS) represent an appropriate instrument to revitalize bank lending and to help overcoming the manifestations of credit crunch notably for SMEs. As evidence of this, the purchase of properly designed ABS has been recently announced by the ECB among the monetary policy measures constituting the Quantitative Easing (QE) program.

The present paper illustrates possible ABS engineering schemes able to re-launch a virtuous relationship between finance and the real economy. In particular several hypotheses of capital structures and of the consequent risk transferring features are developed according to the quality of underlying loans and of the guarantor for the mezzanine tranche the numerical examples presented refer to guarantee schemes provided by a national entity such as the Italian Government and a supranational entity such as the European Investment Bank.

Suggested Citation

Bassanini, Franco and Del Bufalo, Gino and Masera, Rainer and Minenna, Marcello and Reviglio, Edoardo and Zadra, Giuseppe, Quantitative Easing, Structured Finance and Support to the Real Economy Proposals on ABS (November 19, 2014). Available at SSRN: https://ssrn.com/abstract=2527807 or http://dx.doi.org/10.2139/ssrn.2527807

Franco Bassanini

Astrid ( email )

corso VittorioEmanuele II, 142
rome, RM 00186
Italy

Gino Del Bufalo

Cassa Depositi e Prestiti ( email )

Italy

Rainer Masera

Università degli Studi Guglielmo Marconi ( email )

Via Plinio 44
Rome, Rome 00193
Italy
+39 06 377251 (Phone)

Marcello Minenna (Contact Author)

The Italian Securities and Exchange Commission (CONSOB) ( email )

Via G.B.Martini 3
Rome
Italy

Edoardo Reviglio

Cassa Depositi e Prestiti ( email )

Italy

Giuseppe Zadra

Istituto Einaudi for Banking, Financial and Insurance Studies (IST EIN) ( email )

Roma in Piazza del Gesù
49 - 00186
Italy

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