Sovereigns facing price hike if CVA exemption is axed

EBRD says impact would be minimal, but experts warn other swaps users would be hit

price-rise-coins

Sovereigns are facing higher derivatives costs, after the European Banking Authority (EBA) confirmed they will not be spared in plans to bring Europe's version of Basel III in line with the international standard. That requires the removal of exemptions to a key capital charge, and sovereigns are one of the groups currently benefiting, along with non-financial corporates and pension funds.

EBA officials called for the removal of the exemptions during a public meeting in London on December 5, spa

To continue reading...

You must be signed in to use this feature.

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 indvidual account here: