CCPs wary of covered bonds despite Esma proposal


LCH.Clearnet and Eurex will not accept clearing members' own-name covered bonds as collateral despite a proposal to allow it from the European Securities and Markets Authority (Esma). The consultation paper, released on June 25, says clearing members should be allowed to post covered bonds they have issued as long as the underlying securities would themselves be eligible collateral and the debt is ring-fenced from a default by the issuer. That would broaden the range of assets member firms ca