European ABS hopeful for investor influx after CMU report

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By Tom Brown
16 Jun 2020

European securitization could see an influx of investors re-enter the market in light of experts' recommendations of better regulatory treatment in a Capital Markets Union (CMU) report.

Changes include aligning securitizations labelled as ‘simple, transparent and standardised’ (STS) as equivalent to covered bonds in terms of capital treatment, improving liquidity capital ratio (LCR) for bank treasuries holding ABS bonds, and amending Solvency II regulation to encourage insurance investors to return to the market.

The ...

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