Posts tagged 'Collateralised Loans'

The ABS hangover, Eurosystem-style

The ECB announced some updates to its General Documentation on Wednesday. The item on ABS modifications caught our eye.

The move in question was first announced last April, and it represented a toughening up of the rules around ABS collateral for borrowing from the ECB. The update therefore isn’t so much a surprise as a reminder of one of the ongoing, but less spoken about, hangovers of the crisis.

Let’s review the situation… Read more

Counting the copper collateral cost

Copper prices 10 day chart

It’s hard not to wonder what the role of Chinese copper-as-collateral has to do with it? Read more

The problem with Europe’s bail-ins

Here’s something to ponder while we wait for the European Commission’s consultation document on haircuts for senior investors in Europe’s banking debt.

It’s what all this talk of Basel III — plus burdensharing, CoCos and bail-ins has been leading up to — one almighty hike in financials’ funding costs and retrenching banks. Read more

There’s something about the Italian interbank market

Here on FT Alphaville, we’ve often written about the increasing trend towards backing interbank trades with quality collateral.

So far it’s come across as an ad hoc response to post-crisis credit risks, and in Europe especially, the long-term fracturing of eurozone stability into various sovereign risks. Some strange curve pricing here, curious rates divergence there. Read more

It’s stock lending, Jim, but not as you know it

Risk’s Life & Pension edition draws attention to an interesting development occurring in the pensions and insurance arena.

Banks have supposedly been touting insurance and pensions funds for their liquidity. Read more