Asset-backed securities
Individual bank diversification can increase systemic risk, researchers find
Banks that are not systemically important can be ‘systemic as a herd’, authors say
Asset management: outlook for 2019
Monetary policy divergence, fears over protectionism and ESG are shaping reserve managers’ approach to 2019
Sarb says new interest rate benchmarks may be calculated with ‘actual’ transactions
Current benchmark rate based on flawed market data, South African central bank says
Fed to expand market data collection efforts
The scope and availability of data must keep up with evolving markets, Lael Brainard says
Securitisation did not increase for most banks before 2008 - BoI paper
Data from 1991 to 2007 shows banks improved capital ratios after securitising assets
Central banks still value diversification, say reserve managers
Rise in US yields does not outweigh the benefits of forex diversification, say delegates attending Nalm Americas
Ireland nominates Lane for ECB vice-presidency
Irish governor has a track record as academic economist and senior ESRB figure
Sovereign bond-backed securities could improve eurozone stability – ESRB
Regulations would need to change and treatment of sovereign bonds would be vital, argues Central Bank of Ireland Governor
Mersch criticises Commission over securitisation regulation
Some ‘STS’ provisions reduce transparency and increase complexity, ECB board member says
BCBS and Iosco publish draft securitisation criteria
Document focuses on “simple, transparent and comparable” asset-backed commercial paper securitisations
Divergent monetary policies are top concern for reserve managers in 2016
Reserve managers view divergent monetary policies among the world’s top central banks as the most pressing challenge they face in 2016; asset and currency diversification continues
EBA sets out standards for weighing securitisation ratings
Institutions must take 'qualitative' approach to weighing credit agencies’ ratings of securities in the short term, EBA says; advocates move to 'quantitative' approach over longer term
‘Closed’ nature of eurozone banks increases vulnerability, Portuguese paper says
Commercial banks in the eurozone are more likely to be hit by country-specific shocks compared to US given fewer foreign branches; greater use of asset-backed securities may be a solution
Increases in securitisation may lead to under-pricing of risk, study argues
Increased asset securitisation reduces premia on bonds and equities, Bank of Spain working paper says; decrease in cost of risk may not be related to an actual fall in risk
China CLO market stutters on economic slowdown
Regulator's move to increase liquidity and a rise in NPLs have slowed China structured credit market
EBA calls for more risk-sensitive securitisation regulation
Opinion submitted to European Commission recommends end to ‘one-size-fits-all’ capital treatment of securitisations, with two-stage process to determine which should be subject to lighter touch
Bank of England's Rule says reigniting securitisation market will take time
Executive director cautions against rushing to restart securitisation market, as a return to pre-crisis ‘fragile’ market would be counterproductive
IMF report says ‘time has never been more right' to reform securitisation markets
Staff report emphasises need to make securitisation practices more robust while spurring demand; calls for standardised classifications of underlying risk characteristics
RBA markets head details Australian approach to securitisation
Chris Aylmer outlines RBA’s ‘very high standard’ of ABS risk management in its liquidity operations, saying the approach will evolve over time
Draghi dismisses reports of ECB rift
ECB president says it is ‘fairly normal to disagree about things’ and points to divisions on FOMC; earlier reports had raised questions over Draghi’s leadership style
ECB staff told to prepare for further measures
ECB keeps monetary policy stance unchanged; governing council tells staff to ensure the ‘timely preparation' of unspecified 'further measures’ to be implemented ‘if needed’
European Banking Authority unveils framework for classifying high-quality securitisations
Consultation proposes system for classifying securitisations that are ‘simple, standard and transparent’ and therefore may benefit from more lenient regulation
ECB reveals details of asset purchases
Mario Draghi would not be drawn on the size of the asset and bond programmes, but said the ‘potential universe of purchases is up to €1 trillion’
ECB cuts rates and launches asset purchases
Central bank cuts refinance rate to 0.05% and deposit rate to -0.2%; Draghi unveils plans to buy asset-backed securities and covered bonds