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2013

IACPM FOCUS: Regulatory and Accounting News 2013

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 …

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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 …

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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 …

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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 …

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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 …

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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. …

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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 …

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