A week where old fashioned means of resolving €200bn of Italian bad loans came to the fore: they are to be sold with a market price government credit guarantee. The government felt pressed to stop a loss of faith in banks when it never had the UK option of borrowing to recapitalise them.
Reuters bring attention to withdrawal of market makers from government bonds. Are we witnessing waning interest as MiFID II transparency rules loom over the horizon, and CRDIV requirements make position taking expensive. Where will that much wanted bond liquidity come from?
ACT's Policy and Technical team has responded to the UK HMT BEPS consultation on capping interest deductibility, the EU Call for Evidence on the state of financial regulation, and the Euribor consultation.
