Preparing for the Proposed Long-Term Debt Rule: Part II (Compliance and Optimization)

A new rule requiring large banks to issue long-term debt (LTD) to boost their resilience and resolvability is on the way. The final rule has not been issued, so we don’t know when the clock starts ticking on compliance. But it’s not too soon to plan for a requirement likely to increase banks’ marginal cost of funding, impact strategic decisions, and demand more capabilities and resources.

Part I of this series introduced the rule, covering why it …