ECB Redefines Residual Value Risk, Threatening European Auto Loan Securitization Eligibility

On 27 January 2026, the European Central Bank ("ECB") published a press release together with a draft amending Guideline (ECB 2026/1), pending publication in the Official Journal of the EU, which amends the Eurosystem monetary policy implementation framework with a significantly expanded definition of residual value risk for asset-backed securities ("ABS"). The amendments take effect on 30 March 2026.... By: Jones Day