EC Publishes Paper on Development of Private Placement of Debt in EU
EC published report on a study on identifying market and regulatory obstacles to the development of private placement of debt in the EU. The study shows that private placement of debt instruments with institutional investors could play a greater role in financing medium-size companies in the future. The study also highlights a considerable growth potential for private placements in the EU due to new domestic markets and increased cross-border activities.
The paper comprises two parts: an economic part and a legal part. The economic part contains five sections involving stock-taking of existing and well-functioning private placement markets, cost-benefit analysis of private placements vs. other financing instruments, assessment of growth potential of private placement markets in Europe, risk analytics of private placements, and mapping of innovation in the private placement sector. The legal part contains three sections that cover analysis of regulatory best practice in well-functioning private placement markets, identification and analysis of regulatory obstacles to the development of private placement markets across the EU, and analysis of most common risk-mitigation clauses in private placement transactions.
In line with the Capital Markets Union Action Plan, the study identifies best practices in the well-functioning EU markets of private placements (mainly the German Schuldschein and the French EuroPP) as well as potential barriers to their development. The study shows that private placements allow investors to diversify their investment portfolio to unrated, private firms while earning an attractive return. Moreover, the risk profile of private placement instruments is not substantially different from senior unsecured debt. No major regulatory barriers preventing further growth of private placements in the EU have been identified as requiring immediate attention. However, some steps could be taken at the European and national levels to foster the development of private placement markets.
Related Link: Press Release
Keywords: Europe, EU, Securities, Private Placements, Debt Instruments, EC
Previous Article
CPMI Issues Report on Cross-Border Retail PaymentsRelated Articles
|
News
EBA Publishes Reports Monitoring the Implementation of Basel III in EUEBA published two reports measuring the impact of implementing the final Basel III reforms and monitoring the implementation of liquidity measures in EU.
March 20, 2019
WebPage
Regulatory News
|
|
News
BCBS Publishes Results of Survey on Proportionality in Bank RegulationBCBS published a report presenting the results of a survey conducted on proportionality practices in bank regulation and supervision.
March 19, 2019
WebPage
Regulatory News
|
|
News
US Agencies Adopt Interim Rule to Facilitate Transfers of Legacy SwapsUS Agencies (FCA, FDIC, FED, FHFA, and OCC) are adopting and inviting comments on an interim final rule.
March 19, 2019
WebPage
Regulatory News
|
|
News
EIOPA Requests Data on LTG Measures from Insurers Under Solvency IIEIOPA has requested the European Economic Area insurance undertakings, which are subject to Solvency II, to provide information on the long-term guarantee (LTG) measures.
March 18, 2019
WebPage
Regulatory News
|
|
News
PRA Proposes Reporting Amendments to Pillar 2 Liquidity FrameworkPRA proposed (CP6/19) regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.
March 18, 2019
WebPage
Regulatory News
|
|
News
EBA Single Rulebook Q&A: Third Update for March 2019EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.
March 15, 2019
WebPage
Regulatory News
|
|
News
OCC Updates Recovery Planning Booklet of the Comptroller's HandbookOCC updated the Recovery Planning booklet of the Comptroller’s Handbook.
March 15, 2019
WebPage
Regulatory News
|
|
News
CFTC and MAS Announce Mutual Recognition of Derivatives Trading VenuesCFTC and MAS announced the mutual recognition of certain derivatives trading venues in the U.S. and Singapore.
March 15, 2019
WebPage
Regulatory News
|
|
News
EBA Publishes Report on Convergence of Supervisory Practices Across EUEBA published annual report on the convergence of supervisory practices in EU.
March 14, 2019
WebPage
Regulatory News
|
|
News
CPMI-IOSCO Publish Update to Level 1 Assessment of PFMI ImplementationCPMI and IOSCO jointly updated the Level 1 Assessment Online Tracker on monitoring of the implementation of the Principles for financial market infrastructures (PFMI).
March 14, 2019
WebPage
Regulatory News
|
