Securitization breakthrough? Capital charges halved again

EIOPA resized
By Bill Thornhill, Owen Sanderson
21 Mar 2014

The capital charges for insurers to hold securitizations have been halved again, according to the latest draft of Solvency II circulated privately from March 14.

The new charge for a triple-A bond is now 2.1% per year of duration, rather than 4.3% as in the last public proposal (or 7% in the original draft of the rules).

This could finally be the change that makes it economic for European insurers to invest in ...

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