New Solvency II capital charges still threat to ABS demand

Two camels in a desert
Insurer demand for ABS could dry up

Proposals to reduce Solvency II's capital charges on debt securitisations are insufficient and could lead to European insurers' demand for such assets drying up, according to analysts and investment managers.

The European Insurance and Occupational Pensions Authority (Eiopa) last week proposed a more granular treatment of securitisations.

Under the proposals, the capital charges for less risky issues would be reduced to 4.30% while those for riskier ones would rise to 12.50%. Current draft rules

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: