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The stock exchange in Madrid. The EU wants to revitalise a financial product called securitisation, which involves cutting up and repackaging loans, and selling off the risks (Photo: European Parliament)

Markets wait for EU rules on securitised financial products

A new EU 'stamp of approval' to kickstart the use of a controversial financial tool was given for the first time last week - but the market has mostly been in a waiting mode as the adoption of technical rules for the new EU system has faced delays.

The controversial financial tool is called securitisation, and it involves cutting up loans, mortgages or other debts in multiple pieces and then selling off the risk.

Securitisation of subprime mortgages in the United States caused th...

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The stock exchange in Madrid. The EU wants to revitalise a financial product called securitisation, which involves cutting up and repackaging loans, and selling off the risks (Photo: European Parliament)

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