Sunday, December 16, 2007

Canadian asset bail-out falters

No wonder the Bank of Canada is making some changes for their collateral..... Nice to see that so far they havn´t included cdo´s (so far).

Da wundert es wenig das die Bank of Canada einige heftige Änderungen Ihrer Bestimmungen in die Wege leitet.... Schön zu sehen das zumindest CDO´s noch noch nicht enthalten sind.

By the end of March 2008, the Bank will expand the list of eligible securities to include certain types of Canadian dollar-denominated ABCP that meet the following general criteria: are bank-sponsored, are covered by a liquidity provision that meets global standards, and are backed by traditional assets of an acceptable credit quality. In addition, higher standards of disclosure and additional credit ratings will be required. Asset-backed commercial paper backed by collateralized debt obligations and other highly-structured assets will not be considered at this time.

FT Alphaville
A panel seeking to restructure Canada’s frozen asset-backed commercial paper market is struggling to persuade more than a dozen Canadian and foreign banks to provide billions of dollars in back-up funding for the securities. The committee, headed by Purdy Crawford, a prominent corporate director, failed to meet Friday’s deadline for an agreement on restructuring terms, or to provide details of the assets held in 21 frozen trusts, or conduits.

One trust has been restructured.

David Dodge, Bank of Canada governor, warned last week that a meltdown of the highly-leveraged trusts could have a severe knock-on effect in global financial markets, affecting assets worth up to C$250bn ($246bn).

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