ECB withdraws repo for structured covereds

Cash collateral margin capital squeeze compress adobe stock AS 230x150
By Bill Thornhill
29 Sep 2020

The European Central Bank's decision to withdraw repo facilities for structured covered bonds from the start of next year may disincentivise issuers from structuring further deals without a law.

The ECB said on Monday that it would no longer accept “secured marketable assets” as Eurosystem collateral. The central bank said it will phase out repo facilities for “non-legislative covered bonds, or contractual covered bonds, from the Eurosystem collateral framework”.

This means that by January 1, 2021 the ...

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