Meaningful constituent?

Category: Capital Relief Trades ABS

Previous Story       Next Story

Perceived difference between IRB, standardised banks narrowing

Recent transactions imply that the difference between how IRB and standardised banks are perceived by capital relief trade market participants is narrowing. However, opinions vary on whether standardised banks can ever become a meaningful constituent in significant risk transfer, given the barriers to entry that remain.

Synthetic securitisation only became a viable option for standardised banks when the new regulatory framework introduced more efficient risk-weight formulae in January (SCI passim).

Already registered?

Not yet registered? Join today to access SCI Content.