Trade

Are structured cds a good investment

Please forward this error screen to 75. Please forward this error screen to 67. SCI’s Synthetic Securitisation Seminar provides an in-depth exploration of how synthetic securitisation is being utilised are structured cds a good investment transfer risk, achieve capital relief and create bespoke investment opportunities in the post-financial crisis environment.

Panels cover capital relief trade structuring and regulatory considerations, issuance trends, index tranches and mortgage credit risk transfer. Offered strictly on a first come, first served basis we will also offer a two-hour ‘101’ session for new entrants to the sector, to take place on the morning of 13 March. CLN, financial guarantee, true sale etc. This panel examines risk transfer structuring considerations and issuer versus investor motivations.

Are structures becoming standardised enough to apply to other areas of the market? Himesh Shah comments: “Structural issues are key to determining the efficiency of trades for issuers. There is always a three way pull between the regulatory requirements, issuer and investor needs. The constant change of regulatory rules and guidelines makes things even more challenging though we are now seeing greater stability and consistency. This panel looks at the US versus the European landscape, drivers for US banks to begin using risk transfer more widely and the use of credit insurance where regulators don’t recognise synthetic securitisation for capital relief purposes.

The capital relief trades market continues to evolve and grow. This panel examines risk transfer issuance trends, emerging asset classes and jurisdictions, regulatory challenges and ESG considerations. What is the economic impact on deals likely to be if spreads widen or regulations loosen? In this panel we will explore what investors and arrangers are doing to adapt to the changing environment. Sukho Lee comments: Investor demand for leveraged credit products continues to grow in the pursuit of yield, with synthetic bespokes being a key source of growth in the credit derivatives space. The panel will explore the challenges and opportunities in response to changing regulation, market activity and innovation in the space. Fannie Mae and Freddie Mac pioneered the market for transferring mortgage credit default risk with their CAS and STACR programmes, but other firms are now turning to synthetic securitisation to support the US mortgage finance system.

This panel tracks the evolution of mortgage insurance-linked notes and GSE credit risk transfer, focusing on the role of rating agencies, as well as on ways of broadening investor participation and enhancing liquidity. Jim Bennison comments: I’ll be discussing our mortgage insurance linked note structures that have been issued under the Bellemeade name. These transactions transfer a portion of the risk on segregated pools of mortgage insurance originated by Arch MI, the largest mortgage insurer in the US. These transactions represent an innovative way to attract more private capital into the US housing finance system.