Pre-2019 ABS ‘very unlikely’ to stay in EU liquidity buffers

Issuers will struggle to adapt old deals to new STS rules, forcing banks to reshuffle HQLAs

Euro liquidity
New EU regulation could cut supply of ABS deals available to include in bank liquidity buffers

Banks in the European Union are unlikely to be able to count asset-backed securities (ABS) issued before 2019 as part of their prudential liquidity buffers beyond April 2020. This could force them to replace those legacy assets from a much smaller pool of more recent deals that qualify for the new simple, transparent and standardised (STS) label.

The EU Securitisation Regulation, which entered into force in January and established the legal framework for STS notes, permits a transition period

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

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: