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European ABS market faces squeeze 

European auto finance market totaled $375B in 2025 

Marcie Belles

A rule set to go into effect on March 30 could disrupt the European auto securitization market. The European Central Bank (ECB) has expanded its definition of “residual value risk” such that collateral involving payments dependent on the future resale value of vehicles — like auto lease balloon payments — would be ineligible collateral for Eurosystem funding. Because of this […]

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