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Basel Said to Target Bundled Debt in Hunt for Capital Holes

Global regulators are set to toughen capital requirements for banks’ holdings of the riskiest types of bundled debt, known as securitizations, while seeking to shield higher-quality paper from overly onerous rules.

The Basel Committee on Banking Supervision will sign off on draft proposals at a meeting in Hong Kong starting Dec. 3, according to two people familiar with the plans who asked not to be named because the process is private.