(38)Insurance and reinsurance undertakings may decide to use repurchase transactions, or securities lending or borrowing transactions, to manage liquidity or to increase asset returns. However, the capital requirements associated with such transactions are currently treated too conservatively, as they are classified as type 2 exposures for the calculation of capital requirements under the counterparty default risk module. Therefore, Delegated Regulation (EU) 2015/35 should be amended to reclassify those transactions as type 1 exposures. In addition, the Commission will assess, in coordination with EIOPA, whether and how to reflect in capital requirements for counterparty default risk the risk-mitigating effect of central clearing through qualifying CCPs.