EBA lets covered bond issuers off the hook on swaps

EBA Tower 230x15-
By Bill Thornhill
16 Apr 2014

The European Banking Authority proposed this week that covered bond new issue swaps should receive special treatment, ending months of uncertainty over derivatives proposals that could have delivered a fatal blow to the covered bond market.

In September the European Covered Bond Council (ECBC) expressed concern that forcing covered bond issuers' swaps into central clearing, as part of the European Market Infrastructure Regulation, would have crippled the market. However, the European Banking Authority (EBA) has added a special exemption to make it clear that ...

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