Counterparty crisis could shut ECB access
Fitch said on Wednesday that the shrinking pool of highly rated banks to provide swaps in structured financings and covered bonds could put pressure on these asset classes, and add concentration risk to the financial system.
But much more imminent is the danger that peripheral deals in particular could become ineligible as ECB collateral, shutting access to a key source of liquidity for tottering peripheral issuers.New ABS for ECB repo has needed two triple-A ratings at issue since March 2010, with a floor of ...
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