ABS in line for surprise pardon as covered, senior markets falter.

The article reports that European Central Bank director general of market operations Francesco Papadia has criticized the alleged gap between central bank repo criteria and eligible liquid assets for banks. According to the author, market experts have interpreted the comments as an implicit support for European securitizations to become eligible level two liquid assets once the European Union has implemented Basel III, CRD IV. He adds that securitization may return as a source of liquidity.