Market Structure and Dynamics
Regularly reviewing our market structure, processes and dynamics is a key component to achieving SFA’s mission of promoting a robust, liquid and healthy structured finance market as it grows and adapts to the consumers and businesses it supports.
Overview
It may surprise policymakers and regulators, as well as even some market participants, to know that it is currently very difficult – and sometimes impossible – for bondholders to communicate with the companies that issued the securities they own or for bondholders who own the same security to communicate with one another.
The current system is so unreliable that when evaluating potential solutions for the transition away from LIBOR, one of our financial markets’ most serious risk today, market participants view the option of soliciting bondholder consent for an amendment as largely unfeasible.
Publications & Resources
News
Auto Loan Scams Rise in 2024
Auto loan fraud grew over 16 percent in 2024. While fraud is still growing, risk premiums remain unchanged, indicating that investors in ABS backed by…
Consumer Spending Weakens
Consumers are pulling back from spending as they try to understand how macroeconomic changes will impact their finances. Investors are also concerned that the economic…
Credit Card Delinquencies Fall in February
Credit card delinquencies fell by .06 percentage points from January 2025 to February 2025. Additional data illustrates that year-over-year delinquencies are falling as well. This…
VC Funding of AI Moves Closer to 2021 Levels
Venture capital (VC) companies are flooding investments into a small number of private technology companies ranging from fintechs to defense start-ups. While nascent companies have…
Private Credit Vulnerabilities Include Liquidity and Reporting Concerns
Citing several Bank of International Settlement reports, Bloomberg notes that private credit could experience liquidity mismatches between their longer-term loans and the funding they attract from retail…