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
CNBC: Inflation Rises in Line with Expectations
On July 15, the Bureau of Labor Statistics released their CPI report which found that inflation rose by 0.3 percent in June, with the 12-month inflation rate…
Federal Regulators Encourage Financial Inclusion
Vice Chair for Supervision Michelle Bowman, at the Federal Reserve’s Financial Inclusion Conference, highlighted how novel credit scoring models and alternative data could be used…
Credit Card Delinquencies Drop in Q1
The fall in 30-, 60-, and 90-day credit card delinquencies in tandem with the material decrease in the percentage of new card accounts with a…
Powell Speaks on Fed’s Interest Rate Stance
At a European Central Bank conference on July 1, Federal Reserve Chair Jerome Powell highlighted the Fed’s ‘wait-and-see’ stance with regards to future interest rate…
Auto Sales Decline Amid Economic Uncertainty and Elevated Vehicle Prices
U.S. auto sales have declined following a surge in April and May. Car shoppers are being deterred by both high vehicle costs – with the…