When the European Central Bank (ECB) upped its threshold for repo-eligible ABS to triple-A beginning in March, this funding alternative shut down for emerging market securitizations, which could hit that rating only with a level of enhancement that is unavailable in today's environment.

Given that erstwhile ABS investors still refuse to open their wallets, ECB funding through the repo window remains one of the only viable avenues for banking originators to raise capital.

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