Bank amends collateral rules for sovereign debt
Revisions adjust ‘narrow’ and ‘wide’ bands for eligible collateral; change is for liquidity reasons
The Bank of England on Friday announced a change to its collateral rules, which limit sovereign debt deemed as "narrow" collateral to only the most liquid of securities.
The changes see US and Canadian government securities, now eligible as wider collateral, become narrow collateral. However, other sovereigns, supranationals and central banks included in the current narrow collateral list, will now become eligible as wider collateral.
"Narrow collateral will in future include only those
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