ABS Vegas 2020 Day 2
Bernie Sanders claimed victory in the Nevada Democratic primary election to emerge as the clear party frontrunner last weekend. Financial policy experts speaking on Monday at the SFVegas conference in Las Vegas addressed a crowd nervous over the prospect of a progressive left US president unsympathetic to Wall Street.
Spurred by investors’ reach for yield and the drive to more off-the-run assets, MUFG is taking advantage of its expertise in project finance and CLO structuring, preparing a rare project finance CLO and another backed by aviation assets.
Remarks delivered by the Securities and Exchange Commission’s director of the office of credit ratings at SFVegas on Monday hinted at the possibility that the regulator could re-evaluate the effectiveness of Rule 17g-5, a post-crisis rule intended to address conflicts in the issuer pay model.
Traditional consumer ABS asset classes, particularly auto ABS, are looking less like on-the-run, flow assets than they once did, panellists said at SFVegas 2020 on Monday. As the credit cycle stretches on, speakers cautioned the audience to keep an eye on the growing risks in deep subprime consumers and the rise of revolving auto ABS structures.
Some in the market still do not see eye to eye on Libor transition even with the cessation of the benchmark at the end of 2021 fast approaching.
Digitalisation and its impact on traditional practices was front and centre at a CLOs and leveraged loan event at the SFVegas conference on Monday, where speakers were focused on the advent of digital platforms, what is possible and what is premature.
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