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Securitization People and Markets

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  • The European Banking Authority has set a core Tier 1 capital ratio of 5% for banks to pass the next round of stress tests, a level the EBA says is comparable to that in the U.S.
  • Europe is expected to top the U.S. for the first time in the amount of distressed debt banks need to sell, according to Strategic Value Partners.
  • Citigroup’s Australian unit has launched a A$760 million ($800.8 million) offer of residential mortgage-backed securities.
  • The Dubai Department of Finance is planning a $800 securitization linked to future revenues from Salik, the emirate’s road-toll system.
  • Henderson Global Investors is considering the launch of £250 million ($408.77 million) commercial property debt fund for later this year.
  • Lloyds Banking Group is said to have hired McKinsey & Co. to advise it on assets sales and restructuring as it awaits a report next week from the Independent Commission on Banking.
  • The Ukrainian government has designated Rodovid Bank to hold distressed assets exclusively from state banks through 2016.
  • The Australian Office of Financial Management has been ordered to invest an additional A$4 billion ($4.21 billion) in top-rated residential mortgage-backed securities as part of its program to help small lenders.
  • Market players in Europe have absorbed “soft costs” of compliance with the U.S. Securities and Exchange Commission’s 17-g5 in the 12 months since it rolled out in the U.S., according to Richard Hopkin, a managing director at the Association for Financial Markets in Europe.