We do agree, subject to our answers below.
Furthermore we wonder whether the amendments are also applicable to transactions issued before 1 January 2019 that are considered STS under the Transitional provisions of Art 43 of Regulation (EU) 2017/2402. If not so, these transactions might become subject to the Financial Counterparty status as currently considered in the EMIR review, which would create a difficult situation, or best case be regarded as Non Financial Counterparties, which also could create problems for those groups exceeding the relevant thresholds.
Not that we are aware of.
Not really. Compensating recourse to the issuer by the disallowance of a waiver of the pari passu condition is not something that can be easily justified with any “hard numbers”.
The same problem applies as indicated in our answer on Q3. While the comparison of 2% overcollateralisation and 2% credit enhancement for senior notes certainly seems logic, comparing the waiver of the pari passu rank with any other kind of protection is not really a viable possibility.
