Dealers tout bond repacks to bridge TLAC issuance gap
Glut of debt expected to flood market ahead of new regulatory rules could be repacked into structured note-like products
Dealers concerned about filling loss-absorbing regulatory capital buffers with eligible debt instruments could turn to bond repacks to fill part of the gap, market participants say.
With global systemically important banks (G-Sibs) barred from using structured notes to meet their total loss-absorbing capital (TLAC) requirements, dealers say they will be forced to ramp up vanilla issuance in the coming years. While some are concerned about the market's capacity to absorb this flow, dealers hope
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