Lloyds Joins With MetLife Blaming ABS Hiatus on Regulators
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Threats of penal capital and liquidity rules for asset-backed securities are stopping investors buying the debt that the European Central Bank is promoting as a savior for the region’s economy.
Lloyds Banking Group Plc and New York-based MetLife Inc. say they have withdrawn from Europe’s ABS market as they wait to hear how much capital will be needed to back their holdings, and whether the securities can be counted as liquid assets.