Annals of retention and the ECB

Should peripheral banks like the latest ECB collateral moves?

As the FT’s Michael Steen reports, the central bank will now accept “ABS with a lower credit rating and at a lower haircut” than it had done previously, going below the previous triple-A minimum. It could mean another €20bn of collateral eligible to post at the ECB for funding, Steen notes.

But there’s something else…