The Bank of England (BoE), the Federal Reserve (Fed) and the International Monetary Fund (IMF) recently published their semi-annual financial stability reports (FSR). As they are likely indicators of the areas on which regulators will focus their agendas in the near-term, we continue to monitor these reports for changes in the coverage of and tone...
We answer ten frequently asked questions about PCC. (Some readers may find it helpful to reference the LSTA’s Private Corporate Credit Glossary simultaneously.)
Policy & Advocacy, Private Corporate Credit Series
As we’ve highlighted previously,funds that invest in private corporate credit (PCC) (e.g., commingled funds, separately managed accounts and business development companies (BDCs)) often utilize collateralized loan obligations (CLOs) as a financing mechanism.
Andrew Berlin The NAIC today held an ad hoc call with its Structured Securities Group to provide an update on its CLO workstream, following the release earlier this month of preliminary modeling results for BSL CLOs based on 10 proposed default and recovery scenarios across about 13,500 CUSIPs and 1,900 deals. While the NAIC did...
Leverage is a tool that can enable asset managers to increase investment capacity and improve returns without altering their investment strategy or sacrificing asset quality.
Last Friday, the Federal Reserve Board advanced its objective of improving visibility on banks’ exposure to nonbanks with a proposal seeking more granular data in its FR Y-14A/Q/M Capital Assessments and Stress Testing Reports (“the Reports”). The Reports are filed monthly, quarterly and annually and used to set banks’ stress capital buffers requirements, support supervisory...
In December 2023, an interagency proposal was floated to increase the granularity in reporting exposure to nondepository financial institutions (NDFIs) on bank call reports. Its aim was to help the banking agencies better understand risks and performance and make reporting more consistent than it has been historically. The proposal updated the forms with new line...
Last week, the National Association of Insurance Commissioners’ (NAIC) Risk-Based Capital (RBC) Investment Risk and Evaluation Working Group (WG) held a meeting to discuss comments received on its “Memorandum on Consideration of Additional Information on Interim Factor for Residual Tranches.” The WG is tasked with performing a comprehensive review of the RBC investment framework. The...
