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
Economic Reports Closely Watching Consumer Spending
Recent economic reports find that despite economic volatility, consumer spending remains intact, and the labor market remains stable. However, current consumer spending rates could reflect…
Tariffs Begin to Impact the CLO Market
Large sales in the CLO sector have caused the risk premiums on top-rated CLOs to increase by 10 basis points. Other smaller, and lower rated…
FT: Investment Pledges into the U.S. Uncertain
Many countries have informed their businesses to suspend investment into the U.S. According to the Financial Times (FT), $1.9 trillion in investment pledges from domestic and international companies…
NYT: Car Industry at Standstill Amidst Tariffs
According to the New York Times (NYT), many car manufacturers have begun to pause imports to the U.S., close down factories, and lay off autoworkers in response…
Leveraged Finance Deals Slow Down
According to Bloomberg, banks are pulling leveraged loan transactions as they are unsure that they will find investors to fund these loans and fear being left with…