Swedish DMO raises concerns over Basel III impact on bond trading
The chief economist of Sweden’s debt office fears new rules on available-for-sale securities will make government bonds less liquid
The chief economist of the Swedish debt management office has raised concerns about the effect of Basel III's decision to let billions of dollars in unrealised gains and losses on available-for-sale (AFS) bonds flow through to common equity Tier I. They have previously been filtered out, and banks say the change will make their capital numbers more volatile.
To dampen this volatility, some banks
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