Recital 32

(32)Commission Delegated Regulation (EU) 2018/1221 ¹¹ introduced into Delegated Regulation (EU) 2015/35 specific risk factors for spread risk of STS securitisations. However, the risk factors for senior tranches of STS securitisations remained above those applicable to corporate bonds or covered bonds with the same credit quality step. However, contrary to corporate or covered bonds, STS securitisations with a comparable credit quality are subject to specific due diligence and transparency requirements under Regulation (EU) 2017/2402 of the European Parliament and of the Council ¹² . Those requirements ensure that insurance or reinsurance undertakings have a better understanding and management of the risks related to STS securitisations. Therefore, to improve consistency across asset classes with comparable risk profiles, risk factors for senior tranches of STS securitisations should be further aligned with those applicable to corporate or covered bonds.