Want full access to GlobalCapital?
If you are new to GlobalCapital or you already subscribe to some of our channels you can still easily extend your access.
Take a trial to the entire site or subscribe online to see all our capital markets news, opinion and data sets.
Don't miss out!
Regulators, politicians and investors are right to be sceptical about synthetic securitizations as a tool for transferring risk. Pre-crisis deals were rife with confusing, and at times dishonest, documentation. But with the right approach, these deals can help banks reduce their risk and give qualified investors access to much needed yield.
Barclays has put several members of its European ABS business at risk, and is folding those left on the trading desk into its European fixed income credit trading group.
Synthetic securitization, long taboo with investors and regulators, could be making a quiet comeback as yield hungry hedge funds help banks find ways to increase capital and reduce risk weighted assets, writes Graham Bippart.
This year Chinese securitization has struggled to continue the momentum it showed at the end of 2014, failing to come close to the increased Rmb500bn ($82bn) quota from the regulators. While there is more than one reason behind why issuance has been slow, market participants are still confident the budding asset class will come good by the end of the year.
Virginia-headquartered energy provider AES Corporation is set to become the first utility company to tap the growing market for securitizations of solar assets, the company has confirmed.