New framework for on-balance sheet securitizations a mixed bag, says AFME

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By Tom Brown
18 Dec 2020

The Association for Financial Markets in Europe (AFME) has praised new framework for on-balance sheet securitizations in Europe, but warned that it may also make deals more costly and complicated.

The newly announced rules involve extending the ‘simple, transparent and standardised’ (STS) approval stamp to on-balance sheet deals, as well as putting new requirements on non-STS transactions.

Aiming to push issuers towards using the STS label, EU legislators have introduced preferential risk weights for the senior ...

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