Resources for Basel II Capital Accord (Basel II)

German securitization to be affected on introduction of Basel II rules - S&P

money.cnn.com

Standard & Poor's (NYSE:MHP) Ratings Services said securitization in Germany will be affected by changes to the regulatory environment with the introduction of Basel II rules this year.

This is because under Basel II, well-diversified mortgage pools will only attract small capital charges, the ratings agency said.

S&P said Germany's securitization market could not separate itself from the global disruption in the capital markets, which lead to a significant reduction in market activity in the second half.

'There is a good supply of securitizable assets. When and to what extent investors engage again in the primary markets will be key for issuance volumes in the German securitization market in 2008,' the ratings agency said.

View the Resource

Share or bookmarklet this web page at: