Rating agency reliance to grow under CRD IV, says DZ
The covered bond market’s dependency on rating agencies is set to grow under the proposals outlined in the Capital Requirements Directives IV as the draft directly links covered bond ratings to capital requirements, according to DZ Bank research. Meanwhile, the jump in capital charges from triple-A to double-A bonds set out in Solvency II will also encourage insurers to scrutinise covered bond ratings much more closely.
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