Council of EU holds firm to salvage STS securitisations
Market participants welcome reversion to 5% retention rate and lower penalties for breaches
The Council of the European Union has blocked attempts by members of the European Parliament (MEPs) to double the current 5% risk retention rate for originators of securitisation deals in a trialogue agreement, which participants believe will save the market from a heavy blow. Other potentially onerous requirements have also been eased, Risk.net has learned.
“Ultimately, we are currently applying
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