ECB dips its toe into dead sea of rebundled debt

Frankfurt

THE European Central Bank (ECB) is set to embark this week on a scheme to buy the kind of rebundled debt that sparked the global economic crash. With sparse investor interest, its efforts could fall short.

Asset-backed securities (ABS), reparcelled debt that mixes high-risk loans with safer credit, gained notoriety when rebundled home loans in the United States unravelled to spark financial turmoil.