A new twist to ABS

Recent activity in the synthetic CDO market suggests that this asset class may become a common feature in the Asia-Pacific region. Nick Sawyer reports from Tokyo and Hong Kong

The securitisation market has long been popular with both issuers and investors in the Asia-Pacific region. Since the Asian economic meltdown in 1997–98, it has offered an escape route for low rated Asian banks to raise funds and manage risk by restructuring low-rated loans into highly-rated investment vehicles. And now the landscape appears to be slowly changing. In recent months, synthetic securitisation structures have been popping up in Japan, while a couple of firsts have emerged elsewhere

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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