Posts Tagged ‘ LCRs ’

LCR Delegated Act: What do the final rules look like?

Oct 17th, 2014

The LCR Delegated Act from the European Commission is finally out. No, really, it is! Seriously, we are talking about the real thing, not just another leaked document but the final version, the one that will be relevant in the real world and not only talked about in Brussels and a number of European capitals.

Favourable covered treatment confirmed in EC LCR rules

Oct 17th, 2014
Drapeaux européens devant le Berlaymont

Covered bonds’ anticipated favourable treatment in the Liquidity Coverage Requirement was confirmed by the European Commission on Friday, with the highest rated covered bonds eligible for up to 70% of liquidity buffers as Level 1 assets and others in Level 2A or 2B.

US finalises LCR rules, another EC leak

Sep 19th, 2014

The completion of the Liquidity Coverage Ratio (LCR) rules among various countries is proceeding, with the US releasing its final policy. On the euro front, another document was leaked, with most parameters remaining the same.

Danes laud leaked Commission paper with covered in Level 1

May 16th, 2014
AppMargrethe Vestager_1

A leaked document by European Commission staff circulating this week confirms statements from two Danish ministries last Friday that certain large, highly rated covered bonds will be eligible as Level 1 assets for Liquidity Coverage Ratio purposes, albeit with an overall cap of 70% and a haircut of 7%.

2A+ status and higher limit seen as likely LCR result from Commission

May 8th, 2014

The EC is steering toward keeping covered bonds as Level 2 assets for LCR purposes but allowing them to make up a larger share, according to sources, and an EC spokesperson said “talks are progressing well” about a solution addressing Danish concerns.

MPs send Barnier latest salvo as Danish detail ARMs plans

Jan 23rd, 2014
Karin Gaardsted, MP

Danish mortgage banks have begun announcing their plans for the forthcoming auction season of more than Dkr200bn (Eu26.8bn) of ARMs bond sales, while Danish MPs launched the latest salvo in the ongoing battle for covered bonds to be included as Level 1 assets in LCRs.

Early EBA liquidity ranking boosts covered bonds’ LCR case

Oct 24th, 2013
EBA offices in London

Covered bonds are virtually as liquid as government bonds, according to a “very preliminary” draft ranking released by the European Banking Authority yesterday (Wednesday), which market participants have said puts the asset class in a strong position to be considered as Level 1 assets in Liquidity Coverage Ratios.

ECBC in covered Level 1 call else ‘simply impossible’ for Danes

Oct 12th, 2012

Covered bonds should count as Level 1 assets under CRD IV, the ECBC argued in a position paper released on Monday, with this treatment particularly important for domestic covered bonds in Denmark as it would otherwise be “simply impossible” for the country’s financial institutions to fulfil LCR requirements.