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IACPM Submits Clarification on Tranche Cover Transactions to BCBS and IOSCO

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  • IACPM Submits Clarification on Tranche Cover Transactions to BCBS and IOSCO
06/02/2015

On February 13, 2015 the International Association of Credit Portfolio Managers (the “IACPM”) had the opportunity to comment on the consultative document, “Criteria for identifying simple, transparent and comparable securitisations” (the “CD”).

The IACPM remains concerned that synthetic tranched protection on a portfolio of banking exposures, or (Tranched Covers as it can be called from a prudential bank regulatory parlance) which may be commonly used by Credit Portfolio Managers as a tool for prudent credit risk management of their banks’ loan exposures may be misunderstood as complex and opaque by the regulatory community just due to their “synthetic” feature.

 

Click here to access IACPM's clarification letter

Complete listing of comments received by the BCBS

Complete listing of comments received by the IOSCO

D304 - Criteria for identifying simple, transparent and comparable securitizations