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Redistributing non-performing loan risk among Italian shareholders, pension funds, banks, retail investors and the government will make Italy’s banking sector worse, not better.
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Increased lobbying efforts to encourage the recapitalisation of government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac in the near future are likely to be futile given the political environment in the US.
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Nobody likes it when markets seize up, but the post-Brexit plight of the UK commercial property funds shows markets working well, not badly. It also demonstrates why markets, not banks, are the best providers of financing.
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The Basel Committee on Banking Supervision’s updated securitization framework shows strong alignment with the European Commission on risk weights — but adverse discussions in the European Parliament mean that the chances creating the elusive 'level playing field' for high quality securitizations looks slim. -
The news that seven open ended commercial real estate funds froze redemptions this week should come as no surprise. Funding highly illiquid, chunky investments with cash that investors can pull at short notice is a flawed strategy.
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MEP Paul Tang’s proposal to hike European ABS risk retention to 20% is grounded in a worn-out characterisation of structured finance, and shows that the industry is still struggling to shake off the perception of the US subprime crisis.
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The securitization industry’s efforts to educate legislators about the asset class are making progress – but there’s still a long way to go to help politicians overcome big screen characterisations of structured finance.
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The first ever public marketplace loan securitization in Europe has finally priced. The deal’s difficult execution isn’t a great advert for marketplace lending, but deals from other platforms should have a different experience — they are, after all, different asset classes.
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The Italian government and Banca Popolare di Bari’s board are proud that work has begun on dealing with the country’s non-performing loans (NPLs) problem, only six weeks after the new guarantee scheme was signed into law. But the hard parts are still to come.
