Fiscal stimulus has played a key role in settling markets and the economy, and while credit default and spread forecasts remain negative, credit conditions seem to be stabilizing and ‘Worst Case’ may not happen.
The European Commission has published the Capital Markets Union Action Plan. The Action Plan highlights the 16 different actions. IACPM has highlighted three that are relevant for credit portfolio managers.
IACPM joined the Global Financial Markets Association, the Institute of International Finance and the Structured Finance Association to respond to the Basel Committee’s technical amendment on capital treatment of securitisations of non-performing loans.
IACPM provided comments to the European Banking Authority on the revised guidelines for significant risk transfer (SRT) under the CRR. The EBA had requested feedback to the December 2017 SRT published rules.
Credit professionals forecast wider credit spreads and rising loan defaults; a stark contrast to results in global financial markets which, after a steep drop at the onset of the pandemic, have largely recovered.
IACPM responded to the proposals of the High Level Forum on the Capital Markets Union. The proposals, if implemented, would help expand the importance of synthetic securitisations as an important credit risk management tool.
To support its membership in these challenging times, the IACPM has compiled a reference list by jurisdiction of published COVID-19 Regulatory Guidelines relevant to the Credit Portfolio Management Function.
The outlook for rising global corporate debt defaults over the next 12 months is the most pronounced since the first outlook survey was taken at the end of 2008 at the beginning of the Great Recession.
In a joint association letter to the European Commission, the IACPM highlights credit insurance's role in bank lending facilitation during the Covid-19 crisis.
The IACPM responded to the European Securities and Markets Authority on the Guidelines on securitisation repository data completeness and consistency thresholds.