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
U.S. Vehicle Sales Decline Amid High Prices and Borrowing Costs
According to the Wall Street Journal, elevated new vehicle prices and borrowing costs are deterring shoppers, with sales declining 1.9% year-over-year in Q3 2024. Consumers are…
Fed Chair Powell Signals Cautious Approach to Interest Rate Cuts Amid Economic Stability
According to the Wall Street Journal, Federal Reserve Chair Jerome Powell stated that the Fed will continue to gradually reduce interest rates. Powell noted that while…
U.S. Consumer Confidence Drops in September
According to data from the Conference Board, consumer confidence decreased significantly in September reflecting tighter labor market conditions. Despite this, layoffs remain at historically low…
WSJ: Sub-Prime Borrowers Squeezed
The Wall Street Journal reports that consumers – particularly subprime consumers – are struggling to keep up with their bills. In addition to rising prices, these…
Federal Reserve Lowers Interest Rates 50 Basis Points
The Federal Reserve voted to lower the federal funds rate 50 basis points to the range of 4.75%-5%. The Fed’s post meeting statement noted a cooling labor…