Writing in TXF, Olivier Paul, Director, Finance for Development at the International Chamber of Commerce (ICC), explains how the need to comply with mounting regulation and compliance requirements has led to unintended consequences for trade finance.
In turn, it is up to the industry, led by organisations such as ICC, to advocate for appropriate and fair treatment of trade finance within banking regulation.
Read the ICC’s latest report on the topic, Banking regulation and the campaign to mitigate the unintended consequences for trade finance: a milestone report.
Read the full article on TXF here.
While the first half of 2019 saw a somewhat lacklustre performance in the global green bond market, the latter stages of this year are bringing change – particularly for Latin America.
Writing for the World Bank’s blog, Bruno Bastit, Associate Director, Sustainable Finance, S&P Global Ratings, notes that following the issuance of two large green transactions totalling US$1.3 billion in the first quarter of this year, the region is seeing increased interest in financing projects and infrastructure via green-labelled debt instruments.
However, for green bonds to really take hold in Latin America, uptake needs to extend beyond the handful of countries, issuers and sectors spearheading issuances today, says Bastit.
The article was published on World Bank’s blog here, as well as its Spanish language blog, Voces, here.
Speaking to BloombergNEF, Anne-Christine Champion – Global Head of Real Assets, Corporate and Investment Banking at Natixis – explains how the continued low interest rate environment is making infrastructure attractive to institutional investors seeking “a better risk-adjusted return than with corporate bonds”.
Speaking about the infrastructure asset class, Champion notes that it is not “an off-the-shelf” investment and each transaction requires structure in terms of cash flows and product, to achieve good performance.
Natixis helps insurance companies invest in alternative assets through its partnership platform, which sources assets for investors willing to incorporate infrastructure debt in their portfolio. The platform is expected to accelerate with the low interest rate environment “because pension funds and insurance companies need more than ever to find alternative transactions to diversify their portfolios”, explains Champion.
To read the full article, please click here (page 7).
BPL Global has brought reinsurance expertise in-house with the appointment of Gregory King-Underwood as Director and Head of Global Reinsurance and Portfolio Solutions.
Commenting on the appointment, James Esdaile, Managing Director, BPL Global said: “We are delighted to welcome Gregory to the BPL Global team, where he will be invaluable in informing our strategy at a time of rising synthetic securitisation and growing synergies between the CPRI and reinsurance markets.”
Following outreach by Moorgate, news of the appointment was covered by: Reinsurance News, Intelligent Insurer, Global Trade Review, Captive International, Captive Review, Structured Credit Investor, Finanznachrichten, Credit Insurance News Digest and TXF.
S&P Global Ratings has assigned Bazalgette Tunnel Ltd’s £75 million fixed-rate senior secured green note issuance a score of E1/95 under its Green Evaluation, representing the highest score on the E1-E4 scale. Proceeds from the issuance will be used to design, build and maintain the Thames Tideway Tunnel in London.
Noemie de la Gorce, the primary analyst of the Green Evaluation, commented on the “positive environmental impact from the increase of available fresh water in the tidal Thames from wastewater treatment, as well as carbon savings.”
Following Moorgate’s outreach, news of the Green Evaluation was covered by WaterBriefing and The Water Report and Global Legal Chronicle.
Speaking with Trade Finance Global, Global Credit Data’s (GCD) Executive Director, Richard Crecel and Membership and Methodology Executive, Daniela Thakkar, discuss IFRS 9 implementation, benchmarking, and how they collaborate and engage with regulators to ensure GCD’s data can be put to best use .
The IFRS 9 accounting standard, implemented following the financial crisis, requires a shift in the manner of assessing provisions by requiring that banks estimate their historic, current and projected losses – including a one-year and a life-time expected credit loss (ECL).
To read the article, please click here.
In an article for The Energy Industry Times, S&P Global Ratings’ Julyana Yokota, senior director and sector lead, Infrastructure and Utilities, Latin America, argues that solid, transparent and predictable regulatory structures are keeping the region’s utilities on track.
Though policy uncertainty remains for some countries, many are mandating minimum renewable energy targets, argues Yokota. And, in turn, autonomous and stable regulatory structures are as vital as ever for the region’s utilities to continue their steady operating performance.
Please click here for the full article.
Deutsche Bank has released its second guide to the ISO 20022 migration. As Part 1 of the Guide emphasised, banks should not consider the migration to ISO 20022 as just “another IT project” and it’s equally important that corporates do not make the mistake of writing it off as just “another bank project”. So whether it’s a global bank implementing seismic changes, or a small corporate taking more modest steps, all market participants need to be regularly updated and ensure they are moving in the right direction.
Guide to ISO 20022 migration: Part 2” offers guidance for picking a successful route for migration and securing the full benefits of ISO 20022. Further Guides are planned as the journey continues.
Speaking with Risk.net, Richard Crecel, Global Credit Data’s Executive Director, discusses variability in credit loss estimates for IFRS 9, following the release of their latest benchmarking study.
Crecel notes that, “when you test models against the same reference portfolio, you find a large distribution of outcomes – meaning two different institutions would treat expected losses differently on the same defaulted loan.”
Read the full article here. (paywall)
Read Global Credit Data’s IFRS 9 report here.
In a guest commentary for Börsen-Zeitung, Frank Schafft – Head of Global Markets DACH, Corporate Investment Banking and Member of the Executive Board of Natixis, Germany Branch – notes that the real estate sector – a carbon-intensive asset class – is becoming increasingly popular in terms of investment, so it is essential that it aligns with sustainable initiatives at the investment level.
Natixis has made initial progress in this by introducing the Green Weighting Factor. This is an internal capital allocation mechanism designed to promote financial operations that have a positive impact on the environment, by adjusting the expected profitability threshold for various transactions according to their impact on climate change.
To read the full article, please click here.