Banks remodel issuance structures to combat TLAC

New subsidiaries set to dodge structured note issuance limitations

model-kit-web
Structured note issuers are having to get creative in anticipation of final TLAC rules

A number of the largest dealers in the US structured products market are understood to be in the process of setting up new finance company subsidiaries – a move designed in large part to help them continue selling structured notes in significant volume after the imposition of new capital rules that will severely restrict issuance of the products at the bank holding company level.

A draft Federal Reserve rule published in October 2015 largely renders structured notes ineligible to fill total loss

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net 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