Agency to consider framework but suggests it will be limited
Sponsored video: Societe Generale
Morabanc extends its safety net
Investors and lawyers voice concerns about using segregated accounts structure to issue streamlined cat bond instruments
The Financial Conduct Authority has exempted structured products from the Alternative Investment Fund Managers Directive in the UK, but products issued by offshore special purpose vehicles could still be caught under the new rules
The UK regulator calms reclassification fears by exempting SPVs that issue debt securities from being classed as alternative investment funds
Reserve financing using offshore captives is big business in the US. Yet what started as an innovative method of moving excessive reserve requirements off balance sheet has turned, in some regulators’ minds, into a dark art that puts policyholder protection...
US clearing rules do not exempt SPVs, but industry is split on whether other exemptions - for unclearable swaps - would apply
Running for covered
Return of the DPCs
At least six banks are talking to lawyers and rating agencies about reviving derivatives product companies, although AAA ratings may now be off the table
Using non-financial corporate bonds instead of bank bonds to underpin structured products could encourage more investors to consider them, as it would help diversify the counterparty risk within a portfolio, say industry participants
Best in Italy
Deal of the Year, Asia: Deutsche Bank
A proposed ban on the promotion of Unregulated Collective Investment Schemes and ‘similar products', drafted by the UK's Financial Services Authority, will include some structured products issued by special purpose vehicles
Securitisation would be "a lot less viable" if SPVs do not qualify for clearing exemption, says Isda
Making good on bad assets
Trade of the month: collateralisation
The Securities and Futures Commission's new rules will force dealers to offer secondary pricing and give investors a five-day option to back out of longer-dated trades
The decision of a US bankruptcy court to void contractual provisions that shield investors from the credit risk of swap counterparties in structured finance deals has put the legal systems of England and the US on a collision course. It also has potential...
At the height of the financial crisis, manufacturers were quick to mitigate mounting counterparty risk concerns by deploying products issued by collateralised special purpose vehicles. But now, as the yield junkies return and retail appetite for collateralisation...