Nathan Tipping

Nov 7, 2024 | risk.net | Nathan Tipping

As ailing US corporates have struggled to service post-crisis loans, the prevalence of cov-lite lending has helped let creditors carve up distressed debt and sometimes cut other lenders out of the picture. And as the fragility of some of the weakest companies has grown, so has the creative guile among lenders seeking to minimise their losses and refinance. Liability management exercises (LMEs) have become an increasingly popular means for distressed lenders to raise new cash – and for the craftier

Sep 26, 2024 | risk.net | Nathan Tipping

In 17 years of buying European asset-backed securities (ABS), Aza Teeuwen has rarely been as busy as he is right now. The usual summer lull in primary markets didn’t materialise this year. ABS issuance has already outstripped the whole of 2023 by 80%. The issuance glut is a reason for optimism, Teeuwen says. But he’s also cautious. “Spreads have been rallying quite quickly. But some deals by newer issuers have been a bit overbaked.”Teeuwen, who heads ABS at £20 billion ($26.8 billion) fixed

Sep 22, 2024 | risk.net | Nathan Tipping

The regulatory tide appears to be turning against Additional Tier 1 bonds, a form of regulatory bank capital that was thrust into the spotlight following Credit Suisse’s emergency takeover by UBS last year. Earlier this month, the Australian Prudential Regulation Authority proposed scrapping AT1s altogether, marking the latest in a series of regulatory statements expressing a dislike for the asset class.

Sep 20, 2024 | centralbanking.com | Nathan Tipping |Christopher Jeffery |Daniel Hinge |Daniel Blackburn

The growing use of complex offshore reinsurance deals by private equity-backed insurers could lead to a build-up of hidden risks, the Bank for International Settlements says in a report published on September 16. A rapid increase in firms employing so-called asset-intensive reinsurance (AIR) is of particular concern, the BIS says. The report emphasises that co-ordination among regulators will be crucial to manage the risks. “Reinsurance chains have become more complex,” the BIS states. “The life

Sep 15, 2024 | risk.net | Nathan Tipping

The growing use of complex offshore reinsurance deals by private equity-backed insurers could lead to a build-up of hidden risks, the Bank for International Settlements (BIS) says in a report today. A rapid increase in firms employing so-called asset-intensive reinsurance is of particular concern, the BIS says. The report emphasises that co-ordination among regulators will be crucial to manage the risks. “Reinsurance chains have become more complex,” the BIS states. “The life insurance sector has