Markit Recap – 11/21/2016

The European Commission announced on November 23 a banking reform package that will result in changes to the CRR and CRD IV capital requirement legislation, as well as changes to the BRRD and SRMR legislation relating to recovery and resolution of failing financial institutions. The package is very broad, so we won’t attempt to comment on all of the measures.

But one change under the BRRD caught our eye, as it will have a material impact on how the bond market – and possibly the CDS market – trades. The EC proposes a harmonised framework for bondholder hierarchy…