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
Inflation Levels Lower than Forecasted
The May CPI Report found that inflation rose by 2.4 percent year-over-year in May. This increase was lower than the expected 2.5 percent. This month’s lower-than-expected inflation…
Debt Issuance Intensifies in May and June
Junk bond and investment grade bond sales are expected to rise as U.S. companies work to get ahead of pending tariffs. Junk bond sales reached…
The Expansion of Private Credit Analyzed in Recent Report
A report by researchers from the Securities and Exchange Commission, Moody’s, and Harvard found that private credit’s exponential growth and inherent opaqueness could be the cause of…
SEC Atkins May Seek to Increase Investor Access to Private Markets
Securities and Exchange Commission Chairman Paul Atkins stated that he is open to changing SEC rules that currently restrict the sale of closed-end funds that…
US Borrowing Costs Rise After Credit Downgrade
The downgrade of the U.S.’s sovereign credit rating has caused borrowing costs for the U.S. government to rise. Reasons for the downgrade include questions about…