Encumbrance problem weighs on European bank debt buyers

CreditSights points out in a report published yesterday that asset encumbrance has become a hot topic for investors in European unsecured bank debt

Comment by: Sayed Kadiri. Posted 11 years ago [2012-06-07 08:25:27]

The name of the CreditSights report has been added above along with a link.

Comment by: Anonymous. Posted 11 years ago [2012-06-06 14:30:01]

What report is this? Thanks.

Comment by: Anonymous. Posted 11 years ago [2012-06-01 03:35:46]

The rating agencies SHOULD focus attention since increasing encumbrance means that ratings of banks' unsecured debt should be trending down due to the effective subordination. Given that LTRO and ELA funding require encumbrance of collateral and that covered bonds have been popular in recent years, I expect total encumbrance level should be high.