ECB defends higher repo costs for extendable maturity covered bonds

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ECB defends higher repo costs for extendable maturity covered bonds

Bindseil ECB VDP 2016

European Central Bank director general of market operations Ulrich Bindseil, said the central bank’s decision to raise repo haircuts for covered bonds with extendable maturities was purely for risk management purposes and should not be interpreted as a judgemental view of the structures.

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