Rithm Capital’s Post

The outlook for Asia-Pacific banks' capital-raising activity is bright following the recent slump, according to Asia Leader of FTI Capital Advisors Jason Ho. In a recent article for S&P Global Market Intelligence, Jason explains that there may be a possible wave of bank capital raises as the interest rate hike cycle nears its end and as lenders prepare for upcoming stringent capital regulations in 2025. Read more: https://lnkd.in/eWJXDr9U #DebtMarket #BankingSector #DebtIssuance #InterestRates #DebtSecurities #Bonds #CapitalRegulations

“Higher interest rates, geopolitical issues and Credit Suisse’s decision to wipe out AT1 bonds could impact investors’ appetite” – Michael Huang, S&P Global Ratings https://hubs.li/Q01ZLg_P0 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free, and allows you to read two articles a month: https://hubs.li/Q01ZLfdx0

While the July pro­posal would in­clude pa­per losses on some bonds in many re­gional banks’ cap­i­tal lev­els, in­ter­est-rate risk is “sig­nif­i­cantly more com­pli­cated” than that. For ex­am­ple, there is the di­min­ished value of loans like fixed-rate mort­gages…..a huge prob­lem for First Re­pub­lic, for one. In its analy­sis, Moody’s ap­plied a 15% hair­cut to the value of banks’ out­stand­ing res­i­den­tial mort­gages.

“Higher interest rates, geopolitical issues and Credit Suisse’s decision to wipe out AT1 bonds could impact investors’ appetite” – Michael Huang, S&P Global Ratings https://hubs.li/Q01ZLgWd0 Non-subscribers can get a snapshot of Risk’s coverage. Registration is free, and allows you to read two articles a month: https://hubs.li/Q01ZLgQG0

Coalition Greenwich (a division of CRISIL) recently published new research revealing that over half of corporates surveyed in their latest report are unaware of the Global FX Code. Furthermore, a majority of respondents suggested that they either don’t consider themselves active enough in the FX marketplace or that there is no benefit. Some of the reasons cited by those who are adopting the Code include high governance standards, fostering a level playing field between corporates and their banks, and improving both internal and external operating procedures related to foreign exchange. Read announcement: https://lnkd.in/eVDMtngA Stephen Bruel, Tom Jacques, CFA #treasury #fx #foreignexchange #coalitiongreenwich

Schulte partners Craig Stein, Phillip Azzollini, Daniel Oshinsky and Martin Sharkey’s chapter, “U.S. and EU CLOs: Market Trends and Recent Regulatory Developments,” was published in Global Legal Group’s International Comparative Legal Guide - Securitisation 2024.     In this piece they explore current market trends and regulatory developments impacting the CLO market. In 2023, the market for collateralised loan obligations (CLOs) in the United States and Europe experienced significant fluctuations. Following a turbulent 2022, CLO managers anticipated increased investor demand. However, challenges arose early in the year, including notable bank failures in the US and concerns over inflation, SEC regulations, and the transition from USD LIBOR to SOFR. These obstacles hindered CLO issuance through the second quarter of 2023.     However, many issues were resolved by the end of the third quarter, leading to a resurgence in CLO issuance. Additionally, there was a rise in middle-market CLO offerings, continuing into 2024.    Read the chapter: https://bit.ly/4buYYnT   #SchulteLaw 

Well worth the read unpacking the boom in private credit - with some good new stats and perspectives eg Private credit now accounts for 7% of the credit to non-financial corporations in North America (comparable with the shares of broadly syndicated loans and high-yield corporate bonds) vs 1.6% of corporate credit in Europe (who wld benefit from deeper private credit markerts to infill the gaps). #economy #banks #privatecredit

The outlook for Asia-Pacific banks' capital-raising activity is bright following the recent slump, according to Asia Leader of FTI Capital Advisors Jason Ho. In a recent article for S&P Global Market Intelligence, Jason explains that there may be a possible wave of bank capital raises as the interest rate hike cycle nears its end and as lenders prepare for upcoming stringent capital regulations in 2025. Read more: https://lnkd.in/eXHZpXrN #DebtMarket #BankingSector #DebtIssuance #InterestRates #DebtSecurities #Bonds #CapitalRegulations

The outlook for Asia-Pacific banks' capital-raising activity is bright following the recent slump, according to Asia Leader of FTI Capital Advisors Jason Ho. In a recent article for S&P Global Market Intelligence, Jason explains that there may be a possible wave of bank capital raises as the interest rate hike cycle nears its end and as lenders prepare for upcoming stringent capital regulations in 2025. Read more: https://lnkd.in/g9CXjnUg #DebtMarket #BankingSector #DebtIssuance #InterestRates #DebtSecurities #Bonds #CapitalRegulations

The European financial institutions bond market is experiencing renewed investor enthusiasm despite a recent dip in demand, as evidenced by the overwhelming response to recent issuances. A syndicate banker described the market's current state as "euphoric," highlighting #investors' eagerness to buy #bonds amid favourable conditions. Although euro issuance is trailing behind last year's volumes, investors remain hungry for opportunities in the market, contributing to its strength. Sign up to read the rest of the story and comments from bankers across the market: https://lnkd.in/eTEhJwt9 Written by Atanas Dinov, bank finance editor, and Sarah Ainsworth, deputy FIG editor at GlobalCapital #capitalmarkets #FIG #financialinstitutions #financialinstitutiongroup