Global ABS 2007: Central bankers voice structured credit fears

Central banks are worried about structured credit. That was the stark message coming from a central banker panel discussion on financial stability and structured products at the Global ABS conference in Barcelona today.

David Wall of the Bank of England said there were a number of reasons why structured credit is on the BoE’s radar.

Primarily, the ‘originate and distribute’ model is a cause for concern. “It means there is less attention paid to fundamental credit assessment,” says Wall.

He draws pa