Ailing securitisation markets in southern Europe could be revived under new capital rules, which will allow asset-backed securities to circumvent a poor credit rating of their country of origination and also create a new class of simple securitisations.
"This is partly being driven by concerns about southern Europe," David Rule, executive director for prudential policy at the Bank of England, tells Risk.net. "External ratings of obligors can be constrained by the sovereign rating of the country,
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