Mario Draghi: ECB will buy mezzanine loans “only if there is a guarantee.”

FXStreet (London) - Responding to questions from the European Parliament's Economic and Monetary Affairs Committee, European Central Bank president Mario Draghi has stated that the Bank will buy mezzanine loans “only if there is a guarantee.”

- “The mezzanine is the riskier part of the ABS

- “Default rates on ABS in US 18.5%, in Europe 1.5%. And we will only buy very specific ABS, which have even lower default rates