CEBS 122a guidance prompts liquidity fears

08 Jul 2010

While investors in securitisations will not be punished under new EU rules if originators fail to live up to their risk retention obligations, according to a Committee of European Banking Supervisors consultation paper, regulatory risk has not fully lifted from the market.

Still, this aspect of the long awaited guidance on article 122a of the Capital Requirements Directive will come as a relief to ABS investors. "It basically says if it’s not your fault, you’re not going to be penalised," said Kevin Ingram, head of the structured finance practice at ...

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