In a new Rating Methodology report, Moody’s has detailed how over-collateralization is one of the crucial analytical elements in its assessment of the credit enhancement from which holders of European covered bonds benefit relative to unsecured creditors. In addition, Moody’s pays close attention to interest rate and currency risk mitigants which help maintain the value of the cover asset pool. ‘These provisions together combine to create a liquidity buffer to mitigate substitution risk and allow covered bonds to continue performing even in case of issuer bankruptcy – thus reducing the default probability of covered bonds compared to a given issuer’s other obligations. Should covered bond payments need to be accelerated, the presence of over-collateralization then contributes to reduce the severity of loss.’, explained Alexandra Sleator, Senior Vice President and author of the report.
The annual BNP Paribas Cash Management University kicked off on Thursday morning with treasury professionals congregating in Paris from across Europe.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.
Sibos 2017 day two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more