Markets losing faith in STS securitisation plans

Participants consider issuing lookalike deals without the risk of regulatory penalties

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An upcoming European regulatory standard to establish an official label for high-quality securitisations could potentially be copied rather than used by market players. The suggestion comes amidst industry fears over complex criteria for simple, transparent and standardised (STS) deals, combined with the threat of severe legal repercussions if the rules are breached.

"People are just not going to do the transactions. What is more likely is they will make transactions feel like STS, but make sure

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