People & Markets

  • Funding from Congress can replace GSE refi fee, Calabria says

    Funding from Congress can replace GSE refi fee, Calabria says

    The adverse market refinance fee came under fire in a hearing this week, during which House policy makers characterised it as last-minute and poorly explained. Federal Housing Finance Agency (FHFA) Director Mark Calabria emphasized that the fee is necessary, and the only alternative would be to receive funding from Congress before the December implementation date.

  • Credit Suisse launches private credit venture

    Credit Suisse launches private credit venture

    Credit Suisse has teamed up with its biggest shareholder to launch a private credit lending platform, bringing to fruition a plan that been beset by delays and high profile departures.

  • China reforms NPL ABS as bad loans rise

    China reforms NPL ABS as bad loans rise

    The People’s Bank of China has started to allow banks seeking quotas to sell non-performing loan securitizations to shift from the old approval-based system to a registration-based system, onshore bankers told GlobalCapital China this week. The reform is set to speed up the pre-issuance phase and ease banks’ increasing pressure to dispose of bad loans.

  • FCA hails success of UK Sonia transition

    FCA hails success of UK Sonia transition

    The UK should be seen as the “poster child” of the transition from inter-bank offered rates (Ibors) to risk-free rates, said a spokesperson from the Financial Conduct Authority, speaking at Global ABS 2020 on Wednesday, who urged the ABS market to turn towards solving the problem of legacy issuance.

  • Market pros see chance for ABS to rebuild Europe’s economy

    GlobalCapital and Afme convened a virtual roundtable to tackle the biggest issues facing securitization as the pandemic crisis continues. While other capital markets and the wider economy are reeling from the economic fallout stemming from Covid-19, European securitization is undergoing a regulatory rejuvenation, as the European Commission turns towards structured products as a solution to the coming wave of NPLs. Meanwhile, the market for synthetic ABS is being given a second look to help free bank balance sheets across Europe and spur lending to the real economy. Over the summer, the market saw the report from the senior forum on the Capital Markets Union, which included a number of recommendations on regulatory adjustments to improve the functioning of securitization in Europe. More recently the European Commission put forward a capital markets economic recovery package including measures related to securitization. The Commission has proposed extending the STS framework to synthetic securitizations or on-balance-sheet securitizations. The Commission has also put forward proposals to remove regulatory obstacles to the securitization of NPLs including changes to the regulatory capital treatment.

  • New NPL rules could open up dealflow but still penalise banks

    New NPL rules could open up dealflow but still penalise banks

    The European Commission’s proposed new approach to non-performing loan securitization may encourage more deals to come out in fully placed format, accelerating development of the market. But the revised rules still hurt banks which hold part of the structures, and which form the vast majority of the market today, as the Commission took its lead from the Basel Committee rather than its own regulators.

  • MEPs call for ESNs as part of new CMU drive

    MEPs call for ESNs as part of new CMU drive

    MEPs have asked the European Commission to come up with a legislative proposal for a new class of bank debt, known as ‘European Secured Notes’, as they push the executive to fast track its work on establishing a Capital Markets Union.

  • People news in brief

    People news in brief

    Wartchow heads to Pemberton — Barclays names permanent equities heads — Bonilla joins Kartesia

All Securitization People and Markets Articles