Celeste Tamers

Jan 5, 2025 | risk.net | Celeste Tamers

Towards the end of last year, for our annual ranking of investment risks, Risk.net asked investors what was worrying them most. The broad direction of their thinking show as much in the answers they didn't give, as the ones they did. Gone from the list this time are a refinancing crunch, a real estate crash, the possible resurfacing of banking troubles, and turmoil in private markets. It's clear what changed. The US Federal Reserve began a long-expected rate cutting cycle in September 2024.

Dec 1, 2024 | risk.net | Celeste Tamers

Early last month, the European Commission opened a consultation on the EU's securitisation rules. Amid the proposals, one controversial idea being mooted is the extension of the so-called STS label to the unfunded protection of bank loan portfolios by insurers - a type of synthetic risk transfer (SRT). STS designation - which applies to securitisation deals that are deemed simple transparent and standardised - allows banks to gain greater capital relief when moving risk off their balance sheet.

Nov 20, 2024 | risk.net | Celeste Tamers

Bank of America is looking to build a trading business focused on US synthetic risk transfer (SRT) deals, according to six sources familiar with its plans. Executives at the bank have been quietly pitching the idea to issuers and investors for months. The effort is understood to be led by David Sklar, head consumer and residential credit trading at BofA. Two of the sources that spoke to Risk.net for this article have seen a pitch book that is being circulated to interested parties.

Oct 29, 2024 | risk.net | Celeste Tamers

Tweet Facebook LinkedIn Save this article Send to Print this page New risk-sharing structures from the biggest banks, and greater issuance from regionals, will drive continued activity in the US credit risk transfer market, despite rule changes that some say could end the market’s rapid growth. That’s according to Matthew Bisanz, the Mayer Brown lawyer who has played a central role in the development of the sector so far.

Oct 16, 2024 | risk.net | Celeste Tamers

When Krishna Kumar went to bed on the eve of the 2016 US presidential election, markets were expecting bonds to sell off and for the dollar and equities to rise on the back of a Clinton win. “Those were the three positions I had when I went to sleep,” recalls the chief investment officer at Goose Hollow Capital. “When I got up the next morning, my P&L was up a lot. I said, ‘Wow, Hillary’s won. I’ve got this right.’” Only then did Kumar realise Clinton had lost.