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
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…
Recession Fears Spark Debt Repayment Concerns
With recession expectations rising, the stocks of consumer lenders have fallen sharply as investors become more concerned about the consumers’ financial health and increasing credit…
Inflation Eases in February
The Consumer Price Index came in at 2.8% for the 12-months ending in February, rising by 0.2 percent on a monthly basis, lower than the 0.5 percent…
Consumer Sentiment Drops as Economic Policy Takes Shape
Recent economic policies and objectives have caused investors and consumers to pull back as confidence in the market falls and economic uncertainty grows. President Trump’s…