EBA proposes framework for STS synthetic securitizations

By Tom Brown
07 May 2020

The European Banking Authority (EBA) has published its proposals for developing a 'simple, transparent and standardised' (STS) framework for synthetic securitization, endorsing better capital treatment and permitting the use of some excess spread for credit enhancement ⁠— a boost for the market if the package is approved by the European Commission.

The EBA drafted the paper at the request of the European Commission to serve as technical advice for the Commission's report set to be submitted to the European Parliament on the topic. It follows the discussion paper released in September 2019.

The paper serves as ...

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