Tag: Covered Bonds

Who knows best?

Posted by Mark Daley
On 8 June 18
AFME, Covered Bonds, ICMA, Insolvency Laws, Securities, STS

A letter sent jointly by AFME, ICMA, and various pan-European, Dutch and German trade bodies repeats the points you have read in this blog about the continuing very uneven playing field for securitisation compared to other fixed income instruments, and especially covered bonds: for Solvency II, the risk factors remain too high for non-senior tranches […]

Posted by Mark Daley
On 1 June 18
BRRD, Covered Bonds, EBA, ESMA, Investor Analysis

The 30th May statement from EBA and ESMA on whether securities held directly by retail investors should be bailed in or not emphasises that just because there may be lots of retail holders of securities does not mean they should not be bailed in if the issuer goes into resolution, but continues that if a […]

Posted by Mark Daley
On 14 May 18
Brexit, Covered Bonds, CRR, EU27

The proposed Covered Bonds Directive and the related proposal to amend the CRR illustrates the issues Brexit poses. Covered bonds by EU issuers are treated favourably under the CRR. UK issues account for only 6% of the EU market, but the status of the 6% issued by UK issuers will change – subject to any […]

Posted by Mark Daley
On 14 May 18
Covered Bonds, ESAs, RTS, STS

The joint ESAs have issued two draft RTS (as contemplated by Article 42 of the Securitisation Regulation) concerning clearing and collateralisation of derivatives entered into by STS issuers. The proposal is to align the rules with those that already exist for covered bonds. By way of background: article 4 of EMIR requires financial counterparties and […]

Posted by Mark Daley
On 16 March 18
Covered Bonds, CRR, EC

Covered bonds receive preferential capital treatment under CRR, but are not precisely defined (although article 129 describes certain characteristics), which allowed different regulators more latitude than the EC would prefer. Tuesday’s EC CMU press release announced a directive to define a covered bond (as “a debt obligation issued by a credit institution and secured by […]

Tag: Covered Bonds

Who knows best?

BRRD and retail investors

The proposed Covered Bonds Directive

EMIR – STS to follow covered bonds

Covered Bond Proposal