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The recent floods in Europe should be sounding alarm bells for the insurance industry. With events like these on the rise thanks to global warming, insurers facing compounding losses should look to catastrophe bonds as an alternative to costly reinsurance. -
There is good reason for cautious optimism when it comes to non-performing loans, despite the dire predictions made last summer. Italy, which has been dogged by NPL problems for years, is a prime example of how well things appear to be turning out, more than a year after the start of the pandemic.
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The build-up of court cases during the pandemic has rendered the investment profile of mortgage performance — a key metric for structured finance investors — ever more difficult to predict.
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So far, despite the constant market chatter, consolidation among CLO managers has yet to occur. Instead, new firms are popping up as buyer demand rises in the hunt for yield. That has included Sancus Capital Management, which arranged its first deal recently having spent eight years as an investor in CLO equity and mezzanine paper.
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Is finance about to break out of the cocoon in which it has pupated for decades, and become a completely different life form?
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The European Commission launched on Tuesday a second big wave of regulation that will soon be controlling more aspects of sustainable finance more tightly. There is a tendency to think anything with the word “sustainable” attached to it is good. But capital markets specialists must ask themselves: will the regulations be helpful?
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When the Federal Reserve shocked the capital markets in June with news that it is bringing forward potential rate hikes to 2023, ABS bonds didn’t budge. With the 2013 taper tantrum and new perspective on inflation behind us, it’s going to take more than words to cause a pull back in the red hot securitization market.
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Accusations of greenwashing have been infrequent in the 14 year old green bond market, which mainly sticks to uncontroversial assets, such as renewable energy and railways. The sustainability-linked bond market is only a toddler, but already a much more difficult child. No wonder: it is handling tougher material.
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A lion walks the streets of Rome, an owl shrieks in the marketplace at noon.
