Bank of New York Mellon is setting up an online marketplace for hard-to-value European asset-backed securities, according to Bloomberg.
The service, expected to go live in the first quarter, will enable banks, asset managers, hedge funds and dealers to buy and sell asset-backed bonds anonymously, acting as an "eBay of illiquid securities," John Spedding, London-based MD at the bank told Bloomberg.
Called Structured Credit Connect, the Internet market will give buyers 24 hours to post bids for assets the BNY Mellon puts up for sale on behalf of clients, charging a fixed commission for successful trades. The platform will initially handle residential mortgage-backed securities.
The European service follows the launch of a similar offering in the US in June and aims to reinvigorate the market for asset-backed securities, which stalled in the wake of the US sub-prime market woes.
BNY Mellon Plans 'EBay' for European Asset-Backed Securities - Bloomberg