Market Structure & 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
WSJ: Strain on Small and Large Banks in the CRE Sector
Differences in the performance of CRE loans are leaving the largest banks (those with more than $100 billion in assets) more exposed to distress in…
Credit Card Delinquencies Slow, According to American Banker
According to VantageScore data, 1.35% of credit card balances were 30 days delinquent in April, marking improvement in the sector. Banks’ credit card charge-offs stood…
CPI Unchanged in May – Inflation Eases
The Bureau of Labor Statistics’ Consumer Price Index for May was unchanged from April but remains 3.3% higher than a year ago. Notably, the index for shelter…
U.S. GDP Growth Slows in Q1 2024
According to the Bureau of Economic Analysis, U.S. GDP growth for Q1 2024 was revised down from 1.6% to 1.3%. The change was driven by a…
Consumer Loan Delinquencies are Declining
The percentage of overall outstanding balances of consumer debt that was 30- 59 days past due– encompassing auto, credit card, mortgage, and personal loans –…