Fitch publishes a report on Basel III proposals for securitisation - "Capital Requirement Proposals Diverge from Structured Finance Performance"

Fitch Ratings has published a report on the Basel III proposals for securitisation. The full report can be found here. A particularly striking chart, displayed below, shows the proposed Basel III capital charges against realised and expected losses:

European Commission publishes a Green Paper on long-term financing of the European economy – securitisation is mentioned as one of the financial channels that could unlock additional long-term funding

Today, 25th March 2013, the European Commission publishes its Green Paper on the long-term financing of the European economy. The Green Paper contains very positive comments on securitisation, including the following paragraph: "Reshaping securitisation markets could also help unlock additional sources of long-term finance. Subject to appropriate oversight and data transparency, they can help financial institutions free capital, which can then be mobilised for additional lending, and manage risk. Market-based initiatives to stimulate securitisation markets include emerging labels for high quality, transparent and standardised securitisations. There is scope to develop simple securitisation products based clear and unleveraged structures, using well-selected, diversified and […]

EBA publishes a consultation paper on the definition of liquid assets for the Liquidity Coverage Ratio

The European Banking Authority is required to provide advice to the European Commission on the types of assets that may be allowed to count toward a bank's Liquidity Coverage Ratio (LCR). On February 21st, the EBA released a discussion paper presenting the methodology and scope of its forthcoming analysis on definitions of highly liquid assets and requesting expressions of views by March 21st 2013 (http://eba.europa.eu/News--Communications/Year/2013/EBA-consults-on-the-process-to-define-highly-liqui.aspx). Following the consultation, the EBA will deliver its final report to the European Commission for integration in CRD. This is a very important consultation for the future of securitisation in Europe. Any high quality asset […]