Structured covered eligible for LCR, but not ABS

Structured covered bonds which use SPVs will remain eligible for bank liquidity buffers, analysts said on Monday. This follows confirmation that ABS will not be eligible for inclusion in the liquidity buffers as it is not issued by a credit institution, the analysts said. They were responding to reports last week, prompted by the latest draft of CRD IV, released by the Danish presidency on January 9, that ABS could be included.