In 2013 the regulatory environment has remained challenging, with many new requirements being proposed for review and implementation. The IACPM has continued to serve as advocate on behalf of our membership with regulators and supervisory agencies to address the important issues affecting credit portfolio managers. Please click here for a brief summary of some of …
2013
IACPM/Oliver Wyman Survey: Perspectives on the Evolving Role of Enterprise-Wide Stress Testing
Since 2009, financial institutions have been rapidly advancing their use of enterprise-wide stress testing to meet increasing regulatory demands and evaluate their capital adequacy. Enterprise-wide stress testing requires a projection of losses conditional on a specific macroeconomic scenario, and has required most banks to develop new methodologies, models, and infrastructure. This has been the main …
IACPM Submits Letter to U.S. Joint Agencies
IACPM submitted a comment letter to the U.S. Joint Agencies regarding the Credit Risk Retention Re-Proposal (SEC 34-70277). The proposal contains an option whereby CLOs can satisfy risk retention requirements via investing in “CLO eligible tranches” of loan facilities. (The original option, whereby risk retention can be satisfied by CLO managers retaining a portion of …
Credit Outlook Dims in North America Despite Debt Deal
More Stable Outlook in Europe according to Latest IACPM Credit Outlook Survey New York, NY – Despite last week’s deal to raise the US debt ceiling and re-open the federal government, respondents to the latest IACPM Credit Outlook Survey see credit conditions tightening in North America with credit spreads widening and corporate defaults rising. The …
IACPM Publishes Principles & Practices in CPM: Findings of the 2013 Survey
IACPM has published a White Paper on the findings of its 2013 biennial Principles and Practices in CPM member survey. This was the fourth time that the IACPM conducted this study, with 66 IACPM member firms, located in 16 countries participating. 2013 Principles & Practices in CPM White Paper
IACPM Credit Outlook Survey Sees Defaults Rising From Recent Low Levels
High Yield Credit Spreads Forecast to Widen as Investors Re-Price Risk New York, NY – Amidst the US Federal Reserve’s consideration of ending its quantitative easing program, almost half the respondents to the latest IACPM’s Credit Outlook Survey forecast rising default rates and widening high yield credit spreads. The Aggregate Credit Default Outlook Index moved …
IACPM Submits Comment Letter to the IASB
The IACPM has submitted a comment letter in response to the IASB’s publication of Exposure Draft “Financial Instruments: Expected Credit Losses”, detailing its key concerns with the IASB’s approach to updating credit loss standards. In the letter, IACPM’s Credit Loss/Impairment Working Group expresses several objections to the proposed standards, including the failure to align recognition of …
IACPM’s Executive Director Publishes Article in The Banker
The IACPM’s Executive Director, Som-lok Leung, wrote an article for The Banker: How to Run a Bank 2013 on the changing role of CPM in the post-crisis world. In the article, Leung discusses the shift in focus from hedging to origination when creating a balanced portfolio, which was triggered by the changing regulation after the credit crisis. …
IACPM Submits Comment Letter to Basel Committee
The Basel Committee published the consultative document, “Recognizing the Cost of Credit Protection Purchased” (BCBS245). The IACPM feels that the requirements proposed in the document would undermine any regulatory recognition of the risk mitigation benefits of prudent hedging. By so doing, it would undermine the economic incentives to legitimately transfer credit risk to outside investors. …
IACPM Credit Outlook Survey Close to Neutral as Outlook for Credit Spreads Eases
Respondents Point to Plateau; Outlook for Corporate Credit Defaults Rises Modestly New York, NY – Respondents to the latest IACPM Credit Outlook Survey took a decidedly neutral approach to the outlook for credit spreads over the next three months, with a large number forecasting spreads would remain unchanged from current levels. The outlook is sharply …